Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bob Miller who wrote (24066)	10/27/1997 11:39:00 AM
From: Knighty Tin	Respond to of 132070

Rampar, I don't like Dell. It is only a matter of time until they make a misstep and this high wire act tries to find a net. And the price is horrendous. There has to be a miracle in pcs for them to deserve that price. However, the question should be, will Dell stock fall a third to equal your tax hickey? I think it will fall much more than that when this bubble pops, but I do not think that time is imminent for them. They are still gaining market share and so far, the competition has been dumber than red brick fences. But, come mid-1998 or a little later, the impact of Y2K and the slowing economy will give them a wackadoo. So, what should you do? I would probably sell a third and write Leap calls on a third, allowing the rest to run for awhile. Every time you realize a loss in a part of your portfolio, you may want to take the opportunity to take an equal gain in Dell. In other words, lower your exposure, but don't eliminate it. But, then, I always wear a belt and suspenders, so I am often guilty of being too conservative on these fluffy trading sardines. If it weren't for the taxes, I'd advise you to sell the shares and buy out of the money calls. So, if any is in a tax-deferred plan, you may want to consider that idea. MB