Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CSGI ...READY FOR TAKE-OFF! -- Ignore unavailable to you. Want to Upgrade?

To: T-Dog who wrote (2536)	2/20/1998 3:40:00 PM
From: tech	Respond to of 3391

T-DOG >> How come you lay into people about buying ALYD as a long term investment and you advise people who bought into CSGI @ 15 to average down? << the two are completely different things. I suggested him to Avg. down because I think that it the best way for him to be able to take that position and make it profitable. My advise would be the same to anyone who bought ALYD at or near the high. In both cases, it would be wise to avg. down and then trade out of the position when the stock moves higher. I have never told anyone that CSGI should be held as a long term investment. >> why would SOME people want to force themselves into ordinary income taxation by trading an account when they can wait for capital gains rates. That's a difference of 39.6% and 20%, plug that into an excel spreadsheet and see who ends up ahead in the long run - assuming that ALYD (or any stock) is going to eventually be a good investment to go long on. << What you say is true if those stocks are continuously moving higher while still being volatile. For instance, if a stock moves from 10 to 20 to 30.... etc. while at the same time having volatility between those ranges, then it may be better to go long instead of trade. I think you would have to agree this is not the case for ALYD. ALYD has been range bound (trading between 14 to 22 ) for some time and has not been consistently moving higher. If anyone bought this stock last year at $12.00 (just before it broke out) and did not trade it, but held it, you would agree that they would only be up approx. $4.50 If someone had bought it last year at $12.00 and traded it, they would of been, in my opinion, far better off regardless of the excess taxes. And they could of bought back in only a few bucks above where it was last year. Furthermore, all of this is mute if you trade it in a IRA account. I trade the options, but I suggested to those who are long, to at least trade the covered calls to increase their profits. For instance, I bough BMCS (as a long term hold) last year at approx. $44 and due to covered calls, my break-even on the stock is at $22.00 and the stock itself is now trading at over $77.00 Regardless, I would use the same strategy for CSGI and once it starts to move I will trade out of my positions. I feel that the speculative y2k stock will provide better trading opportunities and only once they prove their fundamentals , in my opinion, should you go long in them. This is just as true for CSGI as it is for ALYD.