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

To: Big Bucks who wrote (18422)	4/2/1998 7:13:00 PM
From: Paul V.	Respond to of 70976

Big Bucks, >Now you are faced with whether to hold or sell your position and take the tax benefits ( if the stock holds till the 18 month time limit for taxes) Care to share your current strategy??< IMO, the upside of AMAT's gain vrs the downside warrents me riding out any downturn in the Market. In fact, on the Point and Figure Charting site, Tom Dorsey, suggest that the investor ride out any downturn which is bound to be around the corner with the current NYSE valuation. However, if you look at the BULL PERCENTAGE for the OTC and SEMI sector they still are not at their highs. The 10week moving average chart has not reversed. The electric utilities are still holding up even though the gas utilities have reversed. I still believe that we have upward movement in the OTC and Semi Sectors. The rationale being that the big boys will revolve into the OTC and Semi's from the Dow and big cap stock. IMO, AMAT has a near monolopy in equipment area. It is an excellent stock to be in if your guts can take the emotional rides. A friend of mine shorted AMAT at $31 believing that AMAT would go down. I warned him not to underestimate AMAT--well you know the rest. AMAT has thrown many of us for a loop at times. I will ride out AMAT movements as Tom Dorsey suggest and let the DW 10 week moving average and the Semi sector chart indicate my strategy. I will be watching the BP of the SEMI Sector chart very close. I have only to go to the last of July to be in the 20% capital tax bracket (18 months) for my entire portfolio. I am not going to sell until I reach the benchmark since I have waited this far. It will feel good to be in the 20% capital gain bracket and have the opportunity to sell when I want, if I want. I just may ride it out until we hit $100 in 1999 since my cost is $19 per share outside my IRA and that includes additional shares which I have purchased. Just my $.02. Paul V.