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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Raptor who wrote (195)	3/11/1998 3:17:00 AM
From: Bagman	Respond to of 4509

Enjoyed your analysis of your investment "style". Reminds me of Peter Lynch, who always believes you should know a good bit about the company you are investing in. Agree totally. This is such a class board, that I thought I would pass along a few websites that I saw in the Rightline Split Report, on discount brokers. I have been with E-trade (VERY happy), and probably will spread my IRA around by opening up another account with DATEK. Have been over 18 years with Magellan, so wanted to branch out toward more self-directing my purchases (my first IRA purchase the other day was PSFT, as I mentioned earlier). Anyhow. Here are the links: Discount Stock Brokers Ranked sonic.net Three that were mentioned that offered aftermarket trading were: msiebert.com jboxford.com quick-reilly.com

To: Raptor who wrote (195)	3/11/1998 5:20:00 AM
From: Mr Logic	Read Replies (1) \| Respond to of 4509

Raptor I agree with your basic philosophy, being close to a company and investing in it for the long haul. But I think it takes more than that sometimes. Let's say you held no PSFT stock but were in the environment you are in. You think 'this is a great company, I should buy their stock'. Up to here, you and I do the same. But (take PSFT as an example) if the stock price was $10 I would follow my feelings and buy it. If the price was $150 I wouldn't. Two things (at least) are overlaid. Fundamentals and market sentiment. Fundamentals can be great but if the stock is in or out of favour there can easily be a 10x difference in the price making it a great buy or a poor one. The reason I started moving short rather than long - I prefer to be long - was that I became frustrated at the lack of value. I would get exited about a company, but then see too high a price associated with it. So I either put cash on deposit or go short. PSFT has more than doubled in the past year, and looking at the 5 year chart quote.yahoo.com was trading for just a few dollars not so long ago. I think you have to ask yourself the question 'when is this company fully valued?'. Over the past week or two the price has increased $4 or so on no notable news. That's another $1bn of future earnings expectation, just like that. Where does it stop? But if you mortgaged the house to buy just PSFT you have made a great decision, historically. I would have said you shouldn't do that and would have been wrong. I would say you shouldn't stay in that position now. I hope you don't lose out.