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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (3042)	9/12/2000 2:52:46 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 197225

re: why not sell and reenter later? Let me give you an example of how I accumulate a stock. In 1996, I identified CMH as the best mobile-home builder. A quality company, excellent balance sheet, proven management, proven market, etc. I started following the company. I waited 3 years, till it went out of favor. In 9/99, I made my first purchase, when the stock was down (from 18 in 4/98) to 9.6. Over 12 months, ending in 8/00, I steadily lightened up on the rallies, and loaded up on the dips. I kept my capital intact, while steadily lowering my cost basis. I followed the stock daily, sometimes hourly. The stock bottomed at 7.7 in 2/00. I have 20% of my money in the stock, at an average cost of 8.1 (that's less than half a point from the multi-year low for the stock). That is now a long-term position, which I will not consider selling until the stock is hitting the upper end of its PE range (this will probably take a few years). I do it this way, because I have learned (the hard way) that I am not smart enough to predict the bottom (in time or price, or on what news). You misunderstand me (or I'm not saying it very well), if you think my outlook for QCOM is gloomy, or that I am just trying to scalp some short-term profits by trading a range. I'll take the same approach to building a QCOM position, as with CMH. And it may take me just as long.