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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Henry D who wrote (38982)	10/30/2000 9:17:02 PM
From: Tito L. Nisperos Jr.	Read Replies (2) \| Respond to of 70976

Henry D, whatever you decide, Good Luck to you! About: "do u recommend buying 1 year, 2 year, or 3 years LEAPs? or do you stagger your leap purchases? " If I have say $5K left in an IRA, I'd buy a 2002 50, or 60 LEAP Calls. If by Feb next year I deem it necessary to Roll-over, then I'd sell them and with the proceeds, buy 2003s. I've been right twice in a row in the previous two Bull Markets for AMAT --- how about a 3rd or a 4th, or a 5th? Now, in case my $5K becomes $100K say in Oct next year, then I'd liquidate the Options, put $50K in a Money Market and the remaining $50K in AMAT shares. You see a mere $50K in AMAT shares could Balloon to $1.6M in less than 10 years --- as my cousin found out in his 401K...Then if in 2002, a Bear market Drops AMAT 60% or worse again (like the previous 3 Bear Markets), then I'd put my $50K cash to work again and wait till it grows to $1M then liquidate all again then buy at least $950K worth of AMAT shares again and the remaining $50K to lay in wait for the next Bear Market... This Plan is easy to say but hard to follow --- it needs strict discipline in my part... (Now if the Unlikely to Happen should happen, that by the way the young Money Managers whose Battle Cry is "Look Ma, No Techs!" follow Blindly their favorite Analysts down to AMAT's $1 price --- well and good --- I still have $25 cash in one IRA account. I could acquire 10 AMAT shares after paying $15 in commission with it ... Within the next 20 years or so --- I'd be dead by then but my Heir should still be alive by then --- that 10 shares should Balloon to 12K shares, like what happened to a Guy who during the late 70s bought 100 shares, then sold 90 and the remaining 10 shares left in his account to grow to 12K as of this date).