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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (30871)	12/11/1997 11:21:00 AM
From: Tom Trader	Read Replies (1) \| Respond to of 58727

Hi Jim, my apologies for not having got back to you earlier >>Tom, are you sure you're talking techs washout in '83? Not a typo.. many of the techs were infants or didn't exist then. << I did mean 1983--it was no typo. I recall this because Fidelity Select Technology which reached a high of 36+ declined all the way to 15+. I had advised someone who wanted to invest in the techs and did not know anything about them to use a sector specific mutual fund and suggested Fidelity. She bought when it declined to the 19+ level and then blamed me( light-heartedly) when it got to the 16 level--she bailed out when it got back to break-even a few months later. Now a greater than a 50% loss in a mutual fund valuation is pretty steep. The bear market in the techs in 1983 was a savage one--admittedly a different bunch of players. The premier DD maker at that time was a company called Tandon and SEG's major competitor--now out of business. So Judy, if you read this don't ever accuse my of having a foggy memory again--after all, this is from 14 years ago:)Now she'll probably say that it is my short-term memory that is in question:) >>Perhaps you can throw two cents at this question... ? I agree with much of what you have written -- as evidenced by today's price action, the bottom may well have more to go. As far as the bottom being evidenced through buy-outs occurring, I am not sure that there is much of a precedent for this happening in the tech sector. I think down-grades by the brokerage houses and the attitude of the Street which advises that one should avoid the tech sector is suggestive of a bottom coming together -- now that is not to suggest that it is ready to take off again. It may take a few months for this to happen. For example one of the brokerage houses came out with its 10 best stocks for 1998 and there is not a single tech or bank stock. Brokerage houses and analysts are like lemmings--a mindless group who just follow the herd. Well, you wanted my two cents worth and that is probably what it is worth:)