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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Paul V. who wrote (17624)	3/12/1998 2:26:00 PM
From: Tito L. Nisperos Jr.	Read Replies (1) \| Respond to of 70976

Paul V, Like you said, the hardest part is to sell. That has been my problem for all those many years of investing (my wife's heart must be made of steel to have stuck with me all these years)...The simplest thing I can think of now to maintain my gains in the future is something like this:--- Let's assume I bought 1000 shares recently at 30/sh. I'll hold on and wait for the stock to reach 100 (sometime in Aug 1999, I think) then sell short 1000 shares to protect the 100K value of the shares bought. Now I have 100K in cash earning interests...Whether the stock Yoyoes at any price range, I always maintain the 100K value of the investment---waiting for the 18 month holding period to have a favorable tax rate of 20%...Then, when the stock splits, I will have 2000 shares valued at 100K still; later, when the stock goes down to 30 (post split), I could cover the 1000 shorts paying 30K and reinvesting the remaining 70K at 30/sh thus increasing my holdings to more than 4000 shares!... Of course I'll pay short term capital gains on the 70K profit from the shorts (but if the stock's slide last for 18 months, so much the better because the gains from the shorts fall at the 20% tax rate!)...This strategy could be repeated until I drop dead ---to be continued by those who inherit my Loot!... There are many and better strategies but they are easily said than done; I, myself is like the many who forget to follow every well-laid plan because --- I often want more and still more ...