To: kenya who wrote (12351 ) 12/30/1997 7:28:00 PM From: Jorge Read Replies (1) | Respond to
Kenya.....When being an investor in any stock you can never fall in love with it.....The most dangerous time to own a stock is when you first buy it, knowing there is a possibility it may go down from your entry point....No amount of wishing can make a stock go up.....Now, if you've ridden a stock from lows and pre-splits to where your gains are 300-600 points per share (split adjusted) a $25.00 per share price retracement isn't going to mean as much to you as if you are down $25.00 from your point of entry.......A prudent investor shouldn't let a stock price fall any more than about 5% before selling as a matter of doing cold, hard business, no matter how much you love a company or think it is great.........I have a small amount of CPQ and have been waiting for an entry point but haven't been impressed with its price performance....I agree, something is going on, which we don't fully understand at this point - great DOW, great NAS, great S&P 500, great DELL, great just about everything but CPQ......Does this mean CPQ is in trouble......."The Market and Ticker Tape Knows Everything" is a true statement and in itself DOES mean something.....It can't be ignored.....However, before bailing out at big losses, or turning aside and saying CPQ is history, in all fairness, let's see how the market responds when January gets here......Many fund managers and institutional investors are still on vacation......CPQ is a bigger fund stock (around 70%) than DELL (around 40%).....There is still a split coming - and no, it doesn't have to start running up now. While some stocks will run up weeks early, many don't start a noticeable run until a week to 10 days before.....Then we've got earnings report 2 days after the split..........I say there is still plenty of reasons to not get too excited yet......Keep watching the tape......If you are already in a decent profit position I don't think you're going to lose any more.....If your're waiting to enter I think the time is right around the corner.............George
