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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (1143)	3/7/2001 10:36:34 PM
From: Don England	Read Replies (1) \| Respond to of 23153

gottfried and aggie, the one thing i have found (hateful) stops useful for is getting out of a rising stock, sacrificing a bit, perhaps, but looking at the longer trend and what gift it may give. why sell a winner? give up that extra point that you could get at the top; set your stop in just below where you think to sell and kiss that point bye-bye in pursuit of a greater good. if the stock moves up, fine, if it comes down to meet your stop you are comfortably out and have given up a little, but not a lot. this, of course, only works with winners. i mention this because selling winners that were only halfway home has been a real weakness with me. e.g. chkp at 68 for a double, on its way to 150+. hooohawww! ain't no bandaid gonna cover that one. i have left so much money on the table the legs are bowed - am now in a 12 step program and doing better. hi, my name is don... look at the sales in xto and oei that you did a couple of days ago, aggie. would you have gained by sliding in a stop a point under where you sold and letting the sucker ride? i didn't try to figure it out, so i don't really know. go figger. (will take this opportunity to say that i really, really do value all the input i get from those of you in the biz) from an interesting interview, a couple of snips. Robert Wilson: There has been massive misallocation of capital. The money that has gone into the Internet and telecommunications areas, by which I mean a lot more than the dot-coms, has simply been excessive. As you know, there have been these very high P/E stocks. Excuse me, I didn't mean to say earnings. Let's just say there have been these very high price-to-whatever stocks. And then there have been the "value" stocks that have been dogging it at 10 times earnings or less. If you are running a company whose stock is selling for 10 times and you have free cash flow, you will probably buy in stock. That makes sense because the market is saying, "We don't want you to expand." That is what the market has been telling the electric utilities and the oil companies, for example. In contrast, the market tells the very expensive companies with highly valued stock, "Keep on investing, and we will give you more money." This phenomenon has led to a massive misallocation of investment over the last five years thestreet.com there are also a couple of interesting articles at prudentbear.com. one is on japan. the tension btwn. alliance capitalism and our own brand, and cultural issues, is always fascinating. the article is a bit long, but worth it. the other point of interest there is the mid-week report. smilin' in the hi lonesome, don (no 'yotes out tonoc; they are probably down in the river-bottom chasing house cats under trailers and savaging them. imagine living over that: fluffy in extremis! private rock is on top of the monitor where she lives.)