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To: Grand Poobah who wrote (12116)5/4/1998 1:20:00 PM
From: shane forbes  Respond to of 25814
 
GP: Excellent! Clear as day. Thanks. So LSI has a lot of time since they are 0.18 effective and will just be ramping that up in Q4. Very good.

//ot To continue with the Dr's visit magazine read, I noticed an interesting article on when to sell. I think it was the Shelby Davis fellow who made the remark that he considers solely the after tax return to determine when to sell.

Thus if I had bought at 40 and then the price goes to 100, the return (pre-tax) = 150%, but post-tax it is 120% (assume 20% tax rate). Now 40 + (1.2)(40) = 88. Since I am buying with post-tax dollars the issue is whether I consider 88 a good price - not 100. If I would buy at 88 then I should not sell. If I would sell at 88 then I should sell.

Simple but most people will miss.

Of course with techs the whole volatility thing adds another dimension!

Shane.