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Technology Stocks : MicroStrategy Inc. (MSTR) -- Ignore unavailable to you. Want to Upgrade?

To: Scrumpy who wrote (590)	6/10/2000 2:02:00 AM
From: Toby Zidle	Read Replies (2) \| Respond to of 717

Though I am undoubtedly more bullish on MSTR than you are, your advice to "take profit DAILY" is probably a very wise suggestion. My one fear about MSTR is that they will make some major negative announcement after the market has closed - something like the speculated financial deal has fallen through. Then it is reasonable that MSTR could open 50% lower than it had closed. And those of us who had been long overnight are basically screwed again. Mind you, I don't think this scenario is likely, but anyone would have to admit it is possible. Taking profit daily, at the cost of increased commissions, minimizes the risk of overnight shock (which, if it occurred, would be very costly). Other than the above, I do disagree with you on the lawsuit costs. First, suits are generally settled out of court for pennies on the dollar. Second, those pennies are typically insured. Third, with appeals, it will take years to finalize the outcome if it stayed in the courts. Fourth, as the price recovers toward the pre-fiasco price, allowed damages become substantially less. If MSTR recovers to $250 within the year, then :MSTR can argue that there was NO loss to shareholders who remained long, and, therefore, the cause of the loss rests solely with the plaintiffs' decision to sell, not with MSTR. Fifth, tell me of ANY shareholder suit that cost ANY company hundreds of millions to settle. This is NOT product liability, where the real damage money comes from. In one suit where I was part of the plaintiff class, the settlement gave me one warrant per share redeemable from the company for $8 on my NEXT long purchase of the stock. Big freaking deal!! Sixth, the only winners in a shareholder class-action suit are the attorneys, who take their fees off the top of whatever they settle for. Why do you think so many attorneys were so anxious to get into this circus? Then, to the statement that "they can't keep their books straight", this is an allegation, rather than a fact. If you look back to the time of the 'downfall', there were many postings both on SI and on Yahoo that cited evidence that the revenue-booking practices were consistent with required accounting standards prior to the time that the SEC updated its regulation. MSTR was not the first, nor the last, software company to be challenged by the SEC, only the most damaged. Congradulations on being up 106% on your MSTR investment. I hope it will be but a short time until you are up 406 percent.