Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (26277)	6/13/2000 11:16:00 AM
From: gdichaz	Respond to of 54805

DownSouth: Thanks. Pleased that my thinking out loud was of some use to you. On one specific point LEAPS, there are LEAPS and then there are LEAPS. LEAPS do have rapid time decay toward the end of their time period and that is the usual case cited in books and stated here by Uncle Frank. But there are other factors in LEAPS price performance toward the end of their time span. For example, Qualcomm LEAPS may be a bit different in that. In my direct experience, the "decay" was completely overwhelmed by the rapid price rise in the basic stock leading to Jan 2000. The best time to sell Qualcomm LEAPS during that time period was as late as practical, i.e. late Dec 1999 and early Jan 2000. This was clearly a special case. I only mention it to suggest that like all general rules, there is room for judgement and for "exceptions". I would suggest that in the case of Qualcomm LEAPS due in Jan 2003, there may well be a situation where the data tornado is in full force and therefore the underlying stock may be appreciating rapidly. In that case, the LEAPS follow the stock, so selling (or exercising) (or both) as late as practical (within reason) may make sense. I have no experience with or interest in LEAPS in general, so in no way am I suggesting a general approach - just an observation that because of the wireless data benefit to Qualcomm, the LEAPS may reflect that. Best. Cha2

To: DownSouth who wrote (26277)	6/13/2000 12:51:00 PM
From: Greg Hull	Read Replies (5) \| Respond to of 54805

Sir Galahad, <<I remain convinced that a person with a decent Gorilla Game is better prepared to survive market downturns with good returns on the upturns, minimal sleep deficit, and no significant reduction in their fiscal sanity during their investing years. >> I'm of a slightly different opinion. From talking to friends and relatives and reading different threads, I'm convinced there are twitchy people and placid people, or high-pass and low-pass people to use an engineering term. Some people just have to do something. Doing nothing is worse than doing the wrong thing. Even a placid person will sell stock, of course, but a twitchy person will sell Gorilla stocks just as easily as any other stock. Watching a Gorilla like CSCO fall and not sell, even though you know it has done it before and will rebound, is just too painful. Sleep is lost if they do nothing. I know people who go to the grocery store every day, sometimes several times a day. These same people move in and out of stock positions not because they think they are experts in timing the market, but because they are transaction junkies. I don't fault them, but I prefer to consolidate my shopping needs into just one trip or two a week. I don't go as long between stock trades as Merlin, but I'd like to get there. Greg