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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (35425)	5/11/2000 9:02:00 AM
From: Monty Lenard	Read Replies (1) \| Respond to of 77397

Hello GV. "I have made a lot of money in this stock, consequently I will make a lot of money in the future with this stock." And the other one that totally amazes me is the one about "If I sell it I will just have to pay taxes on it" Lets say they bought CSCO when it first warned to got out. And lets say they bought CSCO at 1/3 that price $80 less $26 = $54 profit x 20% LTCG Rate = $10.80 in tax. $80 less $10.80 = $69.20 in pocket. Here is where they are today $58.50 ... that is about $11 per share and it ain't over yet. Lets say we get a 50% retracement (very likely). CSCO will be $40 or $29 per share after tax. Now lets say their choke point is $40 and they sell there. $40 - $26 = $14 x 20% = $2.80 or $37.20 in pocket. But here is their rationale. "I saved $8 per share in taxes by not selling. GG You would think they would do the math. I just moved a small chunk to Yamner to let them manage it. I have my own trading accounts etc but I wanted them to just manage this. Anyway, my instructions were this "I don't care about LTCG vs STCG and I don't worry about paying taxes on profits. I have no problem with shorting as well as going long. All I want you to do is make money with this money". Monty

To: GVTucker who wrote (35425)	5/11/2000 10:41:00 AM
From: MulhollandDrive	Respond to of 77397

>>I just hope that I am patient enough to wait until the buy and hold mantra is completely destroyed until I buy aggressively.<< GV, I was talking with a buy & holder yesterday who told me that many of his stocks are now trading near his buy in price and NOW he is getting mad. I still think there is a mentality out there that stocks will resume the upward trend and hit the old highs. So I think we will need PATIENCE while we wait for the LTB&H to dissipate. I'm thinking many months of false rallies and trading ranges. bp