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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Eric Dickson who wrote (12249)	2/4/1998 10:23:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 77400

My 2 cents to offer: When you decide the stock has reached an intermediate low, instead of buying back the shares, you can also consider the following: 1) Buy y2k LEAPS calls of slightly out of money strikes to leverage the upward move; or 2) Sell out of money puts (short term or LEAPS puts for better premium) so that even if the shares are assigned to you, your cost basis would be quite a bit lower than otherwise. If, on the other hand, the stock keeps going up and the shares are not "put" to you, you would simply pocket the premium and enjoy it. Regards, Ibexx

To: Eric Dickson who wrote (12249)	2/4/1998 10:58:00 PM
From: JRH	Read Replies (2) \| Respond to of 77400

It seems to me that I can significantly leverage CSCO's expected long term return by selling if the stock gets ahead of itself, as it is now, and getting back in with about 15% more shares after a pullback to say 57. Smart or too greedy? Comments appreciated. Yea, that is what I am talking about!! I think that that is a good idea. But, that is just my opinion. What do you big guys think?? JRH

To: Eric Dickson who wrote (12249)	2/4/1998 11:21:00 PM
From: Helios	Respond to of 77400

That strategy is simply gambling. There is a distinct possibility that the stock will get away from you and you won't be able to buy it back for less than you sold it. Sometimes an overpriced stock becomes more overpriced. After all the people buying at these levels don't think it's overpriced. I agree with them, I happen to think that we are going to see a turn around in the trend in earnings growth rates. The networkers are creating new businesses and opportunities for themselves and CSCO leads the pack. Not because their stuff is the best at any given time but because they have a superior business model. Concentration on end to end solutions is paramount. Look at it from a buyers point of view. You just want something to work and you don't want to deal with interface headaches. Hardware is cheap but technogeeks are expensive and you don't want to keep a lot of them on staff just to keep your network running.

To: Eric Dickson who wrote (12249)	2/5/1998 12:02:00 AM
From: RetiredNow	Respond to of 77400

Eric, do what I do. I always have a core CSCO holding that I absolutely DO NOT touch. Then I come in and buy on dips and sell when it goes back up. That way, I take care of my gambling instinct, but don't screw myself out of the long term gains.

To: Eric Dickson who wrote (12249)	2/5/1998 12:30:00 AM
From: Eric	Read Replies (1) \| Respond to of 77400

Eric Over four years ago I used to "trade" this stock. I made a lot of money for the government and once the stock got away from me when it took a big jump. I had to buy in at a much higher price, I'm glad I did because it never came back down to where I wanted to originally buy it. I did a study about this and flowed out all the possiblitys on paper. The answer was to just get in and take a long position in the stocks you expect to appreciate most. I have to admit that at times of big corrections in this stock I go into margin to buy short term positions with the intent to sell near its recent highs. I still maintain my long position. This gives me the maximum leverage with little risk. Cisco's market size and cap are starting to slow down the magnitude of the swings. It is now becoming a mature growth stock but it still has lots of room to grow. Depending what happens with LU and Northern Telcom I expect Cisco to be a $20 billion a year company in about 4 years, possibly less. When you find a winner just take a position and enjoy the ride! regards Eric