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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (4100)	11/17/1997 1:42:00 PM
From: seminole	Respond to of 7841

Jacob I would avoid selling low and take the tax loss. If you have a long term view of SEG, I would double the current position at this lower price, wait 30+ days, and sell the original postion for a tax loss. If you no longer like SEG, sell and take the loss before buying someting else. But take the tax loss before the end of the year. good luck richard

To: Jacob Snyder who wrote (4100)	11/17/1997 2:38:00 PM
From: Walter High	Respond to of 7841

Jacob: Look at this scenario: say you bought $10,000 worth of SEG and then saw it lose 40%. You can now sell your position and regain $6,000. You write off the $4,000 loss, and in the 40% tax bracket, that puts $1,600 back in your pocket (admitedly not until you file your taxes, though). So the question is: do you think you can do better with a $6,000 position in SEG, or a $7,600 position in another stock? It all depends upon your time frame and your projection of SEG's growth. Walter High

To: Jacob Snyder who wrote (4100)	11/18/1997 10:46:00 AM
From: jas cooper	Read Replies (1) \| Respond to of 7841

I have the same problem you do. I have already declared substantial capital gains for the year, and now have substantial unrealized losses. I would guess many SEG holders are in the same position, so may be selling through the end of the year for tax reasons. Both your scenarios are reasonable, although I wonder if an upturn is in the works for 1997, even a brief one. Assuming confidence in the long term future of SEG, and the 30 day window of the wash rule, I see these options: 1. Sell now and buy back in 31 days. 2. Wait and see if the price goes up before Dec. 31 before selling. 3. Go deeper into margin and double position on a dip before end of Nov, and sell before EOY. I'm beginning to think option 2 is the way to go. I don't think the investment community could look at DDs much worse than they are these days, so it should recover somewhat. But the future of the sector is not terribley bright for all players. I'm hoping SEG will do better. I always thought that they were smart to invest in Dragon, and once folks had easier input methods like voice recognition, they would need bigger drives to store all the crap they would put on their computers. Let us know which way you end up going, jas.