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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (24773)	12/11/1997 1:01:00 PM
From: Paul Merriwether	Read Replies (1) \| Respond to of 176387

<<Suppose you buy XYZ at $100. The fundamentals look good. Along comes the Asian flu and the price drops to $85. You check with the company and find that they have very slight Asian exposure in terms of sales, but they buy a significant amount of components from Asian suppliers. >> You are betting that there won't be a slowdown in the US economy. Also that the PC demand will continue at its current pace. Not good bets imho

To: Chuzzlewit who wrote (24773)	12/11/1997 1:30:00 PM
From: James H. Irwin	Respond to of 176387

To some extent I understand your position. As to your cost basis on CPQ of $0.26 it now makes sense to me. In your example, I buy 1000 shares of everything, not trading much in the $100 range in general. If I buy a stock at $100 and its down 2 points I'm out, no questions asked. I may buy it back but the reason I bought it was I thought it was going up right away. I think its better for most small individual investors to frequent in the $15 to $35 dollar names as those are the ones which statistically (no empirical evidence other than 17 years experience as an ex-institutional equity salesman at a boutique) frequent in. PM's (Portfoliio Managers) want to buy 50,000 at 17 on its way to 25 in the sector of the market we are talking about. At least that's what I focused on for my customers. Shoot for 50% give 'em 30% if that's all you get, take a double if numbers outperform, but if anything smells fishy, let'em know. Salesman always hope too much. I can remember many times when a stock was down 2 telling my customer if you don't get out now, the next person I call probably will and you'll want that bid. I feel like the Allman Bros tune: born a ramblin' man. enough self-gratuitous BS. In closing, this has been the biggest bull market we have ever seen. Everyone I know is sold on buying the dips believing prices will hold. What if they don't? That's all I'm saying. Anything that prevents you from playing tomorrow is a bad position. And why earn the same money twice. There are plenty of good companies going up/poorly performing going down. Lunchtime. Ciao. Jim