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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (14620)	9/5/1998 3:04:00 PM
From: Jon Koplik	Read Replies (3) \| Respond to of 152472

Ramsey - the risk/reward analysis of not being "in" right now, even though one thinks that this is perhaps one of the most incorrectly (low) priced stocks on the planet Earth right now, because it might get "a little cheaper" is very silly, in my opinion. There was an anecdote in Jack Schwager's excellent book "Market Wizards" (ISBN # 0 06 097329 3 in my copy) about one large, well-known commodity speculator talking to another large, well-known commodity speculator (no, this is not going to be a joke) about their (identical, and hugely profitable (at that point) positions in soybean futures). They had both been "in" for a long time, the market had moved a huge amount, but there was a very logical reason to expect the price to go just a little bit further. When the two people realized that it was entirely possible that MANY people were all waiting for the beans to move just that last, little bit, and that there might then be massive "exiting" of identical positions, they both (essentially) hung up the phone and immediately un-wound their entire (huge) positions. I do not remember the exact details of the rest of the story, but the market turned with a vengeance either later that same day, or the next day, (or very soon thereafter) and zoomed back the other direction. What are you doing waiting to see if QCOM reaches $38 if you think it might be $150 in less than a year? It just does not make sense to me. Jon.