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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (14862)	6/30/1998 6:14:00 PM
From: Riskmgmt	Respond to of 77400

Paul: Re:By the way, I hate covered call strategies -- all downside and limited upside. If you're that worried, sell as much of your holdings as you need to to sleep well at night. But don't forget, CSCO would have to drop 20% to match the taxes you'd pay on anything you've held longer than 18 months. Until the interest rate picture changes dramatically, we are in a long-term bull market. Enjoy it.. This is not quite accurate. You pay a maximum of 20% tax on the profit. Therefore, if you own say $200,000 of stock that you paid $100,000 for more than 18 months ago, your maximum tax is $20,000 or 10% of current value. Therefore, the stock only has to drop more than 10% for the seller to be better off. Another point though, is that, if you plan on putting the money back in stocks you are investing 80% of the profit you used to have and unless they get rid or the IRS you will pay taxes sooner or later:) regards, Ray

To: Paul Shread who wrote (14862)	6/30/1998 7:52:00 PM
From: StockMan	Read Replies (3) \| Respond to of 77400

Re -- The heads of rival networking firms should be taken out and short for the asinine cost-cutting they did. The cost-cutting hasn't stopped. Cisco still doesn't have a L3 routing switch (everyone else has one) which will be sold at 1/10 the price of a router. Furthermore Cisco doesn't have a GE product, their Granite acquistion was a failure. The trend is for routers and switches "intelligence" to move into hardware (commoditization), and standardization of IP will hasten this move. This is one of the reasons chambers says that Cisco's margins will decline, and its growth is slowing. Stockman