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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: General Crude who wrote (9467)	5/2/1998 3:13:00 PM
From: Eugene Goodman	Read Replies (1) \| Respond to of 64865

You are right and also wrong. Go back to 1972. You have $ 5000 that you want to put into the market and want to put it into computers. After an evaluation of all the annual reports you narrow it down to GE, NCR and IBM. Or in 1987,DEC. I'm making my point badly, but I believe that in 10 years a lot of the companies that investors are chasing now, will be dead meat. Where was Dell 10 years ago? Will it be growing as it has been in 10 years? I have read about the convergence of stocks prices. On the surface it seems to hold water, but consider that management is good and bad One-half is below average. Many companies develop a culture of bad management. In company performance or in a college class, there is a top 10 %, and a bottom 10 %, with little or no interchange. Why not try to find to top 10 % and put your money there. For example, is there any doubt about the management of CPQ, CSCO or INTC? I do not doubt that the McNealey is smart. But I do doubt that he has even a vague concern about maximizing shareholder value. He seems to feel that he can substitute hubris for earnings and keep the natives quiet. Douglas, this next comment does now refer to you. Many say that they have good feelings about sunw or love sunw because they hate this or that company. A story. I felt that way about Xerox years ago. I rode it down from about 120 to 60, said it can't go down any more, and bought some more, rode it down to 40.... Held, said it can't go down any more.... sorry......I can't go on. Or Pan Am.... Thank God I was working. I sincerely hope that you are right about sunw going up. But if these are all of your savings, I wouldn't miss church. Gene I agree that you have to buy and hold. But you should be ready to get out of a stock. For example if your basis for INTC is 10, why bother selling if it doesn't do anything for a couple of years? If you do get out, in my experience is that you are almost sure to miss buying back in at the right time.