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

To: Alok Sinha who wrote (6316)	12/19/1997 6:13:00 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

I agree that cost basis isn't relevant to buy/sell decisions, and didn't mean to imply that it is -- it's just a way of "keeping score." It also is an indicator, to some extent, of how long-term one's horizon is. That's why it was painful for me to endure the drop from the 50's to the 30's -- I consider the drop to be an actual loss (on an opportunity basis if nothing else, as you rightly, IMHO, point out). I am definitely NOT of the school that believes "it's not a loss or gain until you sell." However, I believe the October drop was not based on fundamental valuation (except perhaps to a minor extent), but instead on psychology and the relative strength of the players involved. As a result, I had no idea how low the market would go or when/if it would turn around. I did not believe I could base a buy/sell decision on any evaluation of the psychology except to the extent my OWN psyche was involved. I've heard it said you should sell until you can sleep at night. I will admit to some sleepless nights. Only moments ago I admitted to buying in the high 40's, so obviously my own evaluation is that SUNW is worth more than that. However, that doesn't change the fact that it can drop for the slimmest of reasons, or for no reason, and one has to be prepared to either ride out such a drop or sell. JMHO, as always.