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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Kenith Lee who wrote (106106)	4/16/2000 5:13:00 PM
From: Mani1	Respond to of 1576909

Kenith Re <<When margin call comes, which holding will an average investor most likely to dispose?...I sold the winner because there are less to sell to get the same dollar value.>> That's why margin call are bad for all stocks. Even those who have great fundamentals like AMD and have not declined much, again like AMD. Mani

To: Kenith Lee who wrote (106106)	4/16/2000 8:01:00 PM
From: SteveC	Respond to of 1576909

"When margin call comes, which holding will an average investor most likely to dispose? a) winner b) even money c) loser I sold the winner because there are less to sell to get the same dollar value." I think this may explain some of AMD's slippage last week (in addition to of course the fact that if the whole market tanks it is unrealistic to expect even a company with stunning earnings to keep advancing). Most people probably seller the winner, e.g. AMD, because they they believe their stock that is at a loss will recover and they hate selling at a loss. So this puts pressure on AMD. Or you have people like me, who fortunately wasn't in a margin call (I had that pleasure repeatedly in 1997 when the small techs I owned hit a bear market), but chose to sell AMD to lock in profits made before everything, including AMD, drops further.