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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (20565)	2/11/1998 2:34:00 PM
From: porcupine --''''>	Respond to of 36349

<< ....It seems that selling at 5 and buying back at 9.... >> You left out the part about selling the Jul 22.5 @ 3-1/2, thereby raising the amount you would get paid upon assignment by 7-1/2. << ...How about inverting your great description to show us how it goes wrong and you lose your life savings doing this? This might make it clearer!... >> First, I can't learn anything new -- unless I try new things. Second, I always experiment with my own money first. Once I know that it works for me, then I commend it to others who may find it of interest. Third, and most important, I have learned over the years that a quality company will bail out virtually any combination of other errors, for those who are patient. What's a "quality" company? 1) Cash flow in excess of capital spending, preferably in periods past, present and in the foreseeable future (the greater the margin between the two, the better). 2) Market leadership. 3) Management with a track record of prospering in good times, and adeptness at damage control in bad ones. Plus, credibility. For example, when management is straight with Wall Street analysts about bad news, you can be pretty sure they're doing everything else straight as well. 4) Good profit margins and returns on assets and equity, at least in relation to a given industry group. 5) Steady growth of 1) and little, if any, decline in 4). 6) Strong balance sheet. 7) good reputation for service and reliability with customers. For example: PAIR --'''':>