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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (13129)	12/26/1998 11:49:00 PM
From: RocketMan	Read Replies (3) \| Respond to of 13594

I would be very surprised if you were not stopped out with a 10% stop. Not saying that is a bad strategy, but if you use such a stop, you should use it with the understanding that you really want out at 10% below the close, and are willing to risk it going right back up after being stopped out. I speak from experience, having been stopped out repeatedly on AOL only to see it run right back up and having to buy in higher. Have you considered put options instead, to cover your downside risk? The problem is that they are very expensive for AOL, due to the volatility.

To: LindyBill who wrote (13129)	12/27/1998 7:49:00 AM
From: Pruguy	Respond to of 13594

interesting strategy for someone who touts that aol is one of only 4 investments you own and you say you are a long term investor. Why would a long term investor want to be stopped out of a stock so close to the current price. This strategy all but assures you will sell at least 10% below the high and need to make a decision when and if to get back in.... creates an opportunity to make more or less going forward IF you get back in

To: LindyBill who wrote (13129)	12/27/1998 11:02:00 AM
From: Dr. D	Read Replies (2) \| Respond to of 13594

Interesting enough that I am placing a "stop loss" sale order at the end of each day, for the following day, at 10% under the close, for insurance! LindyBill No offense intended but this is a losers strategy. I never use stop loss orders anymore. I used one in 1996 on TXN. TXN was on a tear and I feared loosing recent profits. I placed a stop loss 10% under the previous close. The next day a false rumor hit Wall Street. TXN dropped over 10% within an hour. Then the company denied the rumor. The stock reversed course an closed up 5% for the day. I swore I would never use one again. I truly hope you don't experience such a loss. Stop loss is very expensive insurance. I'm sure thousands of others have had similar experiences. If your AOL is in a IRA you escape the tax consequences. However losses are NOT deductable. Trying to time this market is insane. If you truly think AOL has a downside risk, sell it at the open and keep the 10% loss. Best wishes 3d

To: LindyBill who wrote (13129)	12/27/1998 8:16:00 PM
From: ct	Read Replies (2) \| Respond to of 13594

Stop losses can get you in trouble. I had one on CPQ a year or so ago at 62. Kurlak came out with one of his famous downgrades on INTC prior to the market opening. Techs went straight down. CPQ blew right through that stop to 60 where it sold. 15 minutes after the market opened, the panic was over and CPQ was back up to 63 but I was out. Another example, although it is internet, was ONSL. It went up to 108 within 5 minutes of opening which was 10 or 12 points up on 11/30. All of a sudden, the internets plummeted. I have read of a lot of people who had stop losses at 70 and 80. There were no buyers till the stock reached 49 and the stock was sold at that price and it later recovered to about 70 that day. Now, AOL won't drop like that but in a panic, especially on opening, they can really plummet and they usually recover somewhat after that initial plummet but you are out. Stop losses can be very risky. Of course, internets can be risky. Good luck.

To: LindyBill who wrote (13129)	12/28/1998 12:39:00 AM
From: Jorge	Read Replies (2) \| Respond to of 13594

LindyBill.....Why sell at all?....1)If you believe AOL hasn't peaked in it's growth, ride out the downs, smile at the ups...2)Spare yourself the tax consequences, even 20% after 1 year is better than 28% for gains made within 1 year....3)You WON'T be able to time your exit and entry points perfectly either, they'll be calling you "Whipsaw Bill" after awhile..at the same time the buy and hold guys will be called "Rich", or "Astute" for nicknames.... My guess is you haven't been an individual stock buyer very long...What you're talking about is an illusion a novice finds appealing. If AOL is any good at all, buy and hold, there's where your wealth will begin to REALLY accumulate. Regards, George