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

To: Crystal ball who wrote (35855)	5/19/2000 1:45:00 PM
From: Larry Brew	Read Replies (1) \| Respond to of 77397

Crystal ball, 10k blocks! I'm struggling through early retirement from TXN. I doubt I'll ever hold more than 1k of CSCO. Currently 300, so I can buy down a long way. It's all relative. I bet there's not a lot of shorting today. :-) Larry

To: Crystal ball who wrote (35855)	5/19/2000 1:57:00 PM
From: The Phoenix	Read Replies (3) \| Respond to of 77397

Well, Csco is holding so far and it would appear that buying is coming in. OG

To: Crystal ball who wrote (35855)	5/19/2000 2:24:00 PM
From: traetzloff	Read Replies (4) \| Respond to of 77397

"One of the adages of Wall Street is to cut your losses and let your profits run. If you could constantly rebalance your portfolio so that more of your money was in the winning stocks and less was in the losers, your portfolio would ride momentum higher and higher. Because the S&P 500 is capitalization-weighted that is exactly what happens. The index holds each stock in proportion to its total value, or market "capitalization," in the stock market. Therefore, if a stock surges in price, its market capitalization rises and its share in the S&P 500 climbs. Likewise, if a stock tumbles, its market value and its weight in the index both decline." I wish I had been smart enough to write that, but I didn't. It is a direct quote from a VP on S&P's web site. CSCO benefited from this for some time, especially in February, but now it will become on drag on the stock as S&P reduces CSCO weighting in the index and index funds reduce the holdings of CSCO. S&P giveth and S&P taketh away. This may be the low place to buy, but it may just be a point on the roller coaster down. Likely the low point won't be until the index funds do the reduction and we see a sudden sell-off in CSCO. Then jump in. If you know that has already happened, then it is time; but if it hasn't yet happened you are too early. I admit I do not know the timing of any reweight in the index. I can only go from observation that I don't think it has happened. TR