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

To: Muizz M. Kheraj who wrote (31877)	12/23/1997 6:01:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 58727

MK--I agree with much of what you say What you need to factor in is the change in sentiment that has occurred as stocks have declined sharply. MSFT and INTC -- are top of the line companies. I have owned INTC for years and would like to own MSFT, if it comes down sufficiently. But just as surely as stocks get over-valued while they are in an marked uptrend, they become under-valued during a sharp down-trend and therein lies the opportunity for us. We can build up portfolios of quality stocks at reasonable prices -- and as I posted to Nancy, that is what I am seeking to do, not for quick trades but with a longer term horizon in mind. But having been through this several times, believe me when I say that cheap stocks can become a lot cheaper before they turn -- there is no rationality to this process either as they get ridiculously over-valued or undervalued. Just look at YHOO and AOL -- what rational reason is there for these stocks, given what they earn, to be given the valuations that they are?? None IMO--but rationality has little to do with this--and that is the simple truth.