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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (14414)	1/7/2000 10:39:00 AM
From: RocketMan	Read Replies (1) \| Respond to of 54805

UF, I closed out my remaining Qcom puts today, which I had used to hedge my leaps. This is a strategy described in Roth's book, as you know. I would not recommend this to anyone unless they are pretty certain that a stock is going to correct in the near term and are confident about its long term potential, as is the case with Qcom. Anyway, that made me 100% in a few days, can't complain. Used the money to get some BRCM and I established a new gorilla-potential position on cree. Even though I am not totally convinced about cree yet, I like the lead they have in the SiC production, and how SiC's lower power and weight is a natural for aerospace and mobile operations. Good value chain, good BTEs with their patents, good replacement and enabling technology. There's been a lot written about it on this G&K thread, so thanks to you for this thread and to all who have done the DD on this company.

To: Uncle Frank who wrote (14414)	1/7/2000 12:51:00 PM
From: straight life	Respond to of 54805

OT- Just my 2cents in re: margin I view it as a low interest rate loan used to back up my research. For example; after a lot of study, I became convinced that NOVL's directory and caching products had a very good chance to do well in an expanding marketplace. I similarly felt that VISX's recent setback was transitory in nature (thanks StockHawk for the heads up!). What to do? Unless an extraordinary series of negative events is taking place (Oct'98 for example) I stay 100% invested all the time- I can't time worth a damn. Yet in my taxable account I don't want to take profits, ie. sell Q or other winners that I also think will continue to do well. Yet I've done all this research and want to have the opportunity to profit thereby. So I borrow long term to buy for the long term- NOVL leaps and VISX common. What am I paying? 9 - 11%? I don't even know. I hope to make 100% - 1,000%. And if I'm wrong? I'll lose and move on. I don't suggest it for others but it's worked for me.

To: Uncle Frank who wrote (14414)	1/7/2000 2:35:00 PM
From: freeus	Read Replies (4) \| Respond to of 54805

re tell my friends never to use margin as never use cocaine Just to be a brat. One of the former L.A. Dodger pitchers (I think his name was Steve Howe) pitched better when he was taking cocaine. Freeus

To: Uncle Frank who wrote (14414)	1/7/2000 6:14:00 PM
From: Mike Buckley	Respond to of 54805

Frank, Holy moly! Frank and I are agreeing in public. We try really hard to keep our agreement private but I guess we're screwing up. :) Seriously, Frank. Your respsone to Kay about margin made me realize I wasn't very clear about a point I was attempting to make. You wrote: There are folks that regularly venture into high margin to increase their positions when they are convinced they are about to experience a period of growth. In these cases the use of margin is simply a timing play ... You did such a great job of making that point that I'm inspired to improve upon my point, which is a corollary of yours. If the same amount of margin used in moderate amounts is used all the time and within the context of all other buy-and-hold strategies, theoretically the portfolio performance will be higher using the margin than not using it. I'm not sure this would hold true during prolonged periods of high interest rates when margin expense is high, but during periods of moderate or low rates a long-term system should work well if the stock selections are reasonably diversified. --Mike Buckley