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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: QwikSand who wrote (30620)	4/13/2000 5:02:00 AM
From: Steve Lee	Respond to of 64865

Most of what you are saying is correct. If you look at my other holdings over this time period, mainly INTC and RMBS, and see how SUNW has not matched their performance, then a little more credit is deserved. quote.yahoo.com Markets drop because of selling. Selling occurs for reasons. One of those reasons is the excessive valuation of net stocks. SUNW management has been touting itself as a net stock with slogans like "we're the dot in dot.com". When valuations cannot be sustained by earnings or future earnings prospects, stocks will fall. This has been my argument with SUNW. Of course other overvalued stocks are falling. If you followed my other trades, you would see I exited my other major positions earlier this year. The two major positions were in INTC, exited at around current levels, and RMBS, 2/3 exited in 460's and the other 1/3 exited in the 420's. These trades were all reported in realtime on my thread. Since then, most trades have been short term or small positions. I am looking now at taking up a major longish term RMBS position but feel that more market trouble is yet to come as there are still many many overvalued stocks. I don't generally follow the indices as there is no need. If institutions have decided there is going to be a sell off, the unloading begins well in advance of the price decline. To those who are watching carefully, the signs are in every stock that is going to participate. Hence my excellent timing in my major positions of INTC, RMBS. And of course, SUNW which I have never held a position in. A few weeks back, before the first of this month's "events". I suggested that it might be wise to initiate a position hedged against a market meltdown. My recommendation for this was to hold a long INTC position with an equivalent short SUNW position. I even used the word "meltdown" in my post, so there was some foresight there. Here is the post: Message 12711223 (heh heh - take a peek at the post it is a reply to as well) Such a hedged position would today be a winner. Not as good as a pure long INTC hold but better than a pure long SUNW hold. As I mentioned a few weeks ago on this thread, I didn't short SUNW around $100 but chose to "short" MU in the 140's via long puts. That was my hedge over the last few weeks. I tried to close with MU at 109 last week but certain servers at Schwab were having problems <g>. MU since went to around $130 and I did manage to get rid of the puts with MU at 111 yesterday. A welcome gain in this poor market. Again, all trades reported in real time on my thread.