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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (10429)	11/13/1997 7:57:00 AM
From: John Carragher	Respond to of 77400

max90 I know where you are coming from. A few months back I was looking at 3com do to its pe and price versus cisco. I came to this thread and asked for help! I did't buy 3com and thank everyone here. John

To: LTK007 who wrote (10429)	11/13/1997 12:52:00 PM
From: Thomas Scharf	Read Replies (2) \| Respond to of 77400

OFF TOPIC to MAX90: About your 3COM holdings you said "My paper loss on 3Com is now at a level that I have no choice but hold it until it comes back" That feeling is a trap that many investors fall into. You have to ask whether you will get the better return by holding your losing stock till it recovers or cutting your losses and investing those funds in something with better potential. If you paid $100 for stock A and it is now worth only $50, that is what it is worth. Now the decision is based on whether you are more likely to get a double out of stock A in the next year, or perhaps stock B or C has a better chance of giving you that return. In fact, if you own stock A in a taxable account, selling it to buy something else automatically cuts your losses by about 30% because of the tax write-off. Therefore, you only need a 70% return from stock B to make up your loss while stock A would have to appreciate 100%. Think about it, Thomas DISCLAIMER: I am not a tax or investment professional. All statements are merely my OPINION. Perform your own due diligence on all investments. Consult a qualified tax accountant before making investment decisions based on tax considerations.