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

To: Duane L. Olson who wrote (7956)	11/25/1997 11:53:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

OSO - comments requested on new investment strategy. Buy 1 share of X at $100. (total outlay: $100) X falls 20% and is now $80 Buy 1.25 shares of X (total outlay: $100) X falls another 20% from original price and is now $60 Buy 1.67 shares of X (total outlay: 60 * 1 2/3 = $100) ... year+ goes by Price now $120 Buy 0.83 shares of X (outlay: $120 * 5/6 = $100) ... keep doing until revenues of company* are set target* then stop buying and hold... Keep holding until until revenues hit a preassigned target and then do the reverse in selling out of the stock. Choose only 3-5 stocks and aim to have 20% of portfolio in each stock. Choose the stock to be a small company with few analysts and good margins and good mgt and put in the initial investment when the stock has collapsed because of sector fears not change in company fundamentals. Hopefully homework was done well and company will grow in the years to come. --- So strategy is $cost averaging with pre-set 20% drops/rises in stock prices in small cap stocks with little coverage and outstanding mgt and continue investing until company hits "puberty" stage and then holding until company hits "young adult" stage and then gradually selling off. Will keep the tax-man away. Don't have to worry about daily price movements - just set limit buys and limit sells. Important to have a job so that there is a source of cash flow. Or live life dangerously and margin. Don't speculate in other stocks short term or otherwise until all purchases of this stock have been made. Corollary of this: stock needs to be in a fairly volatile sector or else you may not be sufficiently invested. --- What ya think OSO? Curious George wishes to know. (Hey the JUMP buttons on these pages are pretty coooolll...)