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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: Sonny McWilliams who wrote (15190)	12/29/1997 5:48:00 AM
From: W. Clinton Terry	Read Replies (2) \| Respond to of 27012

Sonny: I do not think that our thinking is too far apart here, except on the issue of shorting, which I am willing to do in principle - since I have not done much of it in reality - if I can make some money at it. We may also differ on our assessment of the techs in the short term. The Asian situation is difficult to read in terms of its impact on techs, but it will have an impact. Stocks like Intel could still go down some more from where they are. I have no target price, but the technicals look awful. Also money is flowing out of Intel as of 12/25 which I would not take as a good sign. If you have the stock you can hang on, no big deal assuming you do not need the money. As you know however, I have been in LEAPS which is a wholly different ball game. This has forced me to take a harder look at things and to look at the shorter term. What I think I have learned about LEAPS is the following. While it is nice to say that you can get one or two years out in front of a stock - and most LEAPS are not two years out - when you get 20-30 dollars out of the money, your investment so to speak may not recover in that period of time, certainly not within the current market environment. I could be completely wrong on this, and will report back to you in January of 1999 to see where I would have been had I stayed put. My plan is to trade short term very carefully, and get back into technology when it turns around. Some people are predicting that the techs have bottomed short term and that if there is a rally during the next weeks it will be in this sector. I would hope so. By the end of March or thereabouts, I would hope that the market would resume its upward trend, but that may be wishful thinking. We will have a better idea of this after the quarterly reports. If they are reasonable then the upturn will be sooner than later. If they are not, people might say that they want to wait for the next set of quarterly reports. BWDIK Hope you are well. Clinton