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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?


To: Rich1 who wrote (8737)7/19/2000 11:17:59 PM
From: Original Mad Dog  Read Replies (1) | Respond to of 9427
 
My only concern is what happened to BRCM when it was added, went up almost 100 points.

I'll be interested to hear Tommy's answer too, but I wanted to point out that it wasn't just BRCM. YHOO and I think one or two others shot up dramatically, not just the day after the announcement but also on the day they actually joined the index.

I would suggest looking at the percent of shares in float and short as guides to the extent of the short term pop. YHOO had (still has) fewer than half the shares in float, whereas BRCM and JDSU are around 2/3 or more I think. All are between 50 and 100B market caps.

Here are links to the info if you want it:

biz.yahoo.com

biz.yahoo.com

biz.yahoo.com

I would ride it out a little while before selling CC's, but if I were you I'd listen to TD and other more experienced option investors first.

Good luck,

MAD DOG



To: Rich1 who wrote (8737)7/20/2000 7:46:13 AM
From: Tommy Dorsey  Read Replies (2) | Respond to of 9427
 
You answered your own question. You like the stock, it's in the S&P now, leave it alone but might peel off 1-3 keep 2-3. That cuts that monster volatility down to size. t