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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: JohnG who wrote (60388)	1/7/2000 1:41:00 AM
From: waverider	Read Replies (1) \| Respond to of 152472

Should I sell or hike? I used to pay about 38% in combined state/fed tax when I last calculated it a couple years ago. So let's see... If I had sold at 175 on Monday, I know I would have put all my money back in by today...averaging down...so let's say my average price for my new shares would be around $150...that's a 25 point savings... Let's say my cost basis was around $10 (if you bought in January '99 it should be about that)...and let's say I bought a 100 shares at first... I sold all 800 on Monday of this week. Cost was $8000 Sale was $140,000 Gross profit was $132,000 minus 38% for taxes... $50,000 I owe Uncle Same... Net profit...$82,000 So I am left with about $90,000 to reinvest. I buy 600 shares at that average price (above) of $150... The stock goes up to $230 by the end of this year... I now have a profit of $64,000 + the $82,000 above... I'm ahead...$146,000 IF I had just sat tight and read a book and NOT traded at all... I'm ahead...$176,000. Then if I want to sell, I can go for that 20% long term capital gains taxes thingie. ANY QUESTIONS? Seems clear to me what people ought to do.