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Technology Stocks : ACLY- ACCELR8. Year 2000 Stock -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (1095)	2/17/1998 3:55:00 PM
From: Rashley	Respond to of 1518

I only add to the position because the fundamentals say BUY (or short). I have also set diversification guidelines for my portfolio. I'd be interested to learn about your diversification rules. Sometimes I feel like my portfolio looks too much like a fund. the proceeds in marginable securities!) If the stock does not move, this is an interest free loan. Even if it goes up ... that is OK, as long as the proceeds are invested in securities that go up more. You are still ahead! Which brokers do this? Does Schwab?, Datek? Finally, I wonder who makes a market for ACLY. I've noticed that frequently the spread is 3/4 pt, someone will buy 100 shares at market and the price moves up much more than the small purchase would justify.

To: CalculatedRisk who wrote (1095)	2/17/1998 5:56:00 PM
From: 45bday	Read Replies (2) \| Respond to of 1518

Thanks for the note, but totally confused re your ACLY example. I forget exactly where ACLY was on 1/1, but I think it was in the low 20's. If I had sold out my long position, and shorted at that point I would have lost a bunch over the past 6 weeks instead of coming out with a decent profit. What did I miss?

To: CalculatedRisk who wrote (1095)	2/18/1998 4:32:00 AM
From: Mr Logic	Respond to of 1518

Bill, >>However, I disagree with his advice on setting limits.<< I think we will have to disagree on this as a difference in styles. All closing a position does is cost you the additional commission/spread. I don't adhere to the notion that gains/losses are not real until realised. Goes something like this (reverse case for long) BETTER: short @ 100 stock goes to 110, cover, loss 10 stock goes to 120, short again stock hits 80, gain 40. Net gain 30 - extra commission vs 20 for holding your position, and you are better protected if stock goes even higher than 120. WORSE case short @ 100 stock goes to 110, cover, loss 10 stock hits 80, never get back in on the short, or back in at (say) 100 for a net gain of 10 vs 20 this is not to say that I have not broken the rules. I have, and wished I hadn't. Re fundamentals, absolutely agree, and also take into account 'anti-fundamentals' (I just made that up). With stocks like ACLY, there is a good, fundamental case why it should not sustain the current stock levels. Nobody on this board has argued why fundamentally it should rise, because I don't believe that it is possible to make that argument with even a shred of credibility. MSFT is also way overpriced, but there is a fundamental argument as to why it should do even better. Re>> If I liked buying AMAT at 30, why not add a little at 25<< So long as you're diversification/balance rules allow it I guess that's fine. If I take 1/2 a position then doubling up is OK. If I bought as much as I wanted at 30, attractive as it is at 25 I shouldn't buy more. Another rule that I've broken (and on balance not suffered by breaking). Good to have rules even if you break them... forces you to reevaluate. Maybe we should leave these good people to focus on the ACLY discussion and hop over to Roger's Short picks as you suggest. P.

To: CalculatedRisk who wrote (1095)	2/18/1998 8:24:00 AM
From: Andrew Abrams	Read Replies (1) \| Respond to of 1518

If you short 1000 shares of a $27 dollar stock, you do not get 27k in your account. Most brokers enforce the 50% rule. That is, 50% of the proceeds of a short sale are 'held' against the short position. This is to allow the price of the stock to move against you, without having to put up additional capital each day. If the stock goes against you enough to 'use up' the 50%, you will be asked to put up additional capital (margin call) or the position will be covered by the broker without your approval. AA

To: CalculatedRisk who wrote (1095)	2/19/1998 11:19:00 AM
From: 45bday	Read Replies (2) \| Respond to of 1518

How about a non-technical thought ( my 4 yr. old kept me up all night so not to lucid ). Although I got out of ACLY the other day as posted I know i will get back into this stock at some point either long or short. There is very little stock out there, and right now there seems to be a standoff. The people who own it long, and i know quite a few, are committed to the story and won't sell at this price, and the substantial shorts believe this is pie in the sky and won't cover at this price. So here we sit with no volume and no movement. Who do you think will blink first or is this early morning thought nonsense.