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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (5834)	11/29/1997 8:49:00 PM
From: Thomas Haegin	Respond to of 64865

To have 40% in one stock in an overall tech-heavy and undiversified portfolio is an accident waiting to happen. I couldn't sleep with it. Thomas

To: Bald Eagle who wrote (5834)	11/30/1997 2:30:00 AM
From: Alok Sinha	Respond to of 64865

I usually protect the downside when I have a very large exposure to one stock with protective puts. Sometimes it is expensive but well worth the price in a volatile market. Too many times I have missed the upside on a stock due to covered calls, so I try to aviod them. Also most of my SUNW position has been acquired through assignembnts on selling naked out of the money puts so the cost basis is not very high. I agree diversification is important, but its benefits have been exaggerated too much. When the NASD tumbles all high techs get beaten up so not much benefit to diversifying with high tech only. Regards Alok