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

To: Tito L. Nisperos Jr. who wrote (10326)	11/4/1997 5:26:00 AM
From: Kumar Nathan	Read Replies (2) \| Respond to of 70976

Tito: Following post confirms my outlook on the chip industry. techweb.com . It appears that the industry is going strong. Most of the current days logic chips has embedded DRAM due to its complexity and its requirements. May be that could be one of the reason for DRAM softness. Regards Kumar

To: Tito L. Nisperos Jr. who wrote (10326)	11/4/1997 3:12:00 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 70976

Re: "the most important of all" Yes. That is the critical risk. Margin only works if you buy at a price where there is zero chance of a margin call. Anyone who bought anywhere near the top in 1995 almost certainly lost everthing to a margin call. Anyone who bought anywhere near the top in 1997 on margin is biting their nails right now. Buying on margin does not work with a momentum or growth investing strategy. It works best with a value strategy, or growth-at-a-reasonable price strategy. It also works better if you have a portfolio of at least 5 stocks in different industries, which move independantly. Margin is essentially a method of increasing the volatility of your portfolio. The stocks I invest in are already very volatile. I don't think this translates into risk, as long as I consistently buy near the lows, and buy companies with excellent long-term prospects. If you've ever had a margin call, or been anywhere near one, it was probably such a devastating experience that you'll never consider it again. By the way, I notice you are only posting on the AMAT thread. If you don't mind, could you tell me what other stocks you own or are considering buying? I value your opinion, and am always trolling for new ideas.