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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: twmoore who wrote (49647)	5/7/2004 12:30:10 PM
From: BubbaFred	Respond to of 74559

If it has options, then you can buy the Put options (if the premium is not too high) for short term protection. When the stock drops, the value of the Put options goes up, hence offset the stock drop. If stock goes up, the Put will drop, which offset the gain in the stock. It is best to look at the fundamentals and technicals, to determine if stock is worth keeping. Also, is this a long term play or short term? What got you into the stock in the first place? What were the expectation at time of purchase? Are expectations met? Those are questions I ask myself for evaluating the worthiness of keeping a stock or dumping it. I dump them at 10 to 15% loss, and start looking for another one with better potential.