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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?


To: Stitch who wrote (8235)4/8/2000 7:36:00 PM
From: Mark Madden  Respond to of 9256
 
Here is a weekend report on disk drive pricing from a sample of retail distributor drives. The drives include 346 samples from 6 different distributors.

The average sample of disk drive prices decreased moderately last week.

Weekly average price change
Weighted desktop --- down 0.8%
Less than 11gb --- down 1.2%
11gb to 21gb --- down 0.5%
Greater than 21gb --- down 0.7%
Enterprise --- down 0.2%

Last Quarterly price change (monthly rate)
Weighted desktop --- down 1.5%
Less than 11gb --- down 1.1%
11gb to 21gb --- down 1.3%
Greater than 21gb --- down 2.2%
Enterprise --- up 0.1%

The 0.8% weekly decrease in weighted average price was the largest weekly decrease since February 19, 2000 when the weekly weighted average dropped 1.5%. One week of declining prices is not usually a trend. Continuous weekly declines are of more concern.

Regards,
Mark



To: Stitch who wrote (8235)4/9/2000 8:43:00 PM
From: Kevin Linder  Read Replies (1) | Respond to of 9256
 
<<Even if you had picked one of the 'stars' - would you have held it for the entire ride? >>

Most people don't hold on to the winners. A friend of mine compares it to individuals going through their garden and getting rid of the good plants while keeping the "weeds." Too many people tend to think that the stock that they bought that "tanked" will eventually come back and why sell at a loss?

Then there is the situation that people hold on too long. Currently I am working with a father-in-law and a son-in-law. The father-in-law was lucky enough to buy $10,000 of CSCO stock in 1986. His dilemma is even if he sells it the capital gains tax is a killer and then there is the state tax (and in his case) a city tax. On the other hand, what happens when CSCO's amazing growth rate slows -- the P/E multiple drops and the stock can tank. He also ws smart enough to buy a lot in his retirement plan -- hey, now we are looking at ordinary income tax rates instead of capital gains tax rates...

Oh, they can hold it until they die -- then there is no income tax. Just an estate tax starting at 37% and going to 55%. For the stock held in a retirement plan, there is still Income in Respect to a Decedent (ordinary income tax rates 39%).

Oh, the Republicans want to convince people that its a good idea to eliminate the "bad" estate tax -- what is often unsaid is that there will still be income tax on the property at death -- no "step up" in basis. How do you prove when mom and dad bought a particular stock????

There are ways to avoid the taxes and even taxes on an appreciated stock portfolio. Many people just don't have any idea where and how to begin so the government ends up getting more than its fair share...

Kevin Linder