Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ruffian who wrote (62497)	1/16/2000 9:21:00 AM
From: Sig	Respond to of 152472

Janitor: Thanks. A neat set of calculations and a lot of work Qcom is going up and what to do about it.? 1. Nothing like getting in on the ground floor so now (if ever) is the best time to buy. Wish I had bgt more at 40, will wish soon I had bgt more at $140. 2. The Mo-MO is with us today, great news, probably good earnings, and the analytical bears haven't got on board yet, as they have with computer industry. 3. 2000 is looking very good for the market, great liquidity, improving Asia economy, loosening of trade restrictions, no Web taxes yet, no breakup of Msft(yet), and powerful buildup of the Internet or Web. Greenspan has told us what he plans to do in Feb. . 4. 2001 much more difficult to predict. There is nothing the government cannot screw up( remember the luxury tax that killed the yacht industry). And sooner or later a tax on Web sales or more restrictions on Web security 5. Selling covered calls and locking in a profit of 30% is a rather new investment technique. With low returns on Dow stocks, it should become more popular which will may shortly make it less profitable. I hope that has not been a large part of the reason for Qcoms move ( Buy stock, write covered call, make 30% for the year) because it would have been an upward pressure on the stock price. Summary: To cover Qcom under these conditions 1. I buy some stock because that is marginable and thus provides assets to buy calls 2. I buy 2002 Leaps because they only cost about $15 more than the 2001's and should be hugely profitable in LT gains with the extra year of growth 3. I buy the 2001's because this year has more certainty of great returns but it may be ST gains, because (hopefully) they will soon be so deep in the money that one should roll them out to a higher strike despite the tax penalty. 4. I may also buy the July calls for extra fun and interest, although the Jan 2001's look like just as good investment. If Qcom or the market goes to (apparently) excessive highs I may write covered calls although I have no experience there. One reason for doing it will be that I have made enough money and chose to lock in a profit at the risk of losing the stock. Also would be excellent protection against a market downturn ( hope some of this makes sense (G)) Regards Sig

To: Ruffian who wrote (62497)	1/16/2000 11:22:00 AM
From: myadd	Respond to of 152472

Ruffian/Rich (who is Rich?) Excellent post that is simple enough for any talking head analyst to understand. Maybe the talk shows will help us into the limelight...Regis was roiled on national TV by Kathy Gifford (according to my sister-in-law) for not buying QCOM as she had suggested. She said he will have to depend on his "Millionaire Show" since he didn't invest in the Q or something to that effect. Maybe we should book Dr. J on the Tonight Show since he gets no respect on CNBC. He's my role model instead of these lame actors and sports figures that are hawking their wares. Sure is a nice day in the neighborhood, james