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

To: DownSouth who wrote (26396)	6/16/2000 12:28:00 AM
From: James C. Mc Gowan	Respond to of 54805

DownSouth: re: diversification options How about looking at the Jan2003 Leaps S/P= $40. These are available for about $37/share now. Intrinsic value of $22. At this price, your time value/cost is about $15/share. The way I look at this, you pay about 50 cents per month/per share to rent the Q for 31 months. Now what do we expect the Q to do, from a fundamental view, executing towards 3G and HDR, etc., within that time frame. Another way to look at this is, if the Q DOES NOTHING for the ensuing 2 and 1/2 years that might positively effect share price,Company dries up and blows away, you're out the whole $37/share, as compared to $62 at todays prices. I like to hold onto some common, in a tax-advantaged account, so I can take the opportunity to write covered calls, especially when the WS geniuses go into attack mode, like right about now. If the stock gets called away in a run up, just buy back and sell them again; no tax consequences, no foul. Last year was great for the Q, and put many of us in wonderful financial condition. I do believe that within 2+ years, the fundamental value and strong growth prospects will be worth 50 cents per month rental fee btw now and then. Ask Unqle Franq about his Leap collections, and others on these boards. Ties up less cash than common, esp. in a 'cash' account, too. Allows for diversification to other gorillas. One other thing; I noticed last year that I didn't pay as much attention, for the day to day noise, when holding Leaps. They don't move in lockstep with the common always; heck, if you get some obscure duration/strikes they don't trade for weeks at a time. Good luck with your choices, and may many of your options be of the QCOM persuasion. VLMAH Regards, James