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

To: freeus who wrote (20423)	1/7/1999 4:39:00 PM
From: Eric	Read Replies (1) \| Respond to of 77397

Freeus If you don't need the money for a year sell now and lock in the profits. If you are looking for a long term investment buying now is ok as long as you look beyond 6 months to a year. I keep recalculating my tax situation and I'm now writing options to lock in my gains. The long term story is getting better IMHO for Cisco. Only hindsight is 20/20! Eric

To: freeus who wrote (20423)	1/7/1999 5:28:00 PM
From: Gerald Walls	Read Replies (2) \| Respond to of 77397

I have a cisco leap which has tripled...its a strike price of 65. I am inclined to just exercise it and get the 100 shares. Does it make more sense to do that, or to sell it (eventually) take the profit (sans taxes because its a taxable account) and buy back in on a dip sometime? If you still have it close to expiration and there's little time value remaining and you plan to hold the 100 shares for the long term then exercise as the profit on the LEAPs will roll into the CSCO shares and no taxes will be due. If you plan to sell the CSCO the same year then you may as well sell the LEAP. If the LEAP has a ways to go yet until expiration they you'd probably lose too much time value by exercising so you'd sell. Of course you could always take some profits by rolling the LEAP to a higher strike which will be cheaper but then you still owe the taxes.

To: freeus who wrote (20423)	1/7/1999 9:35:00 PM
From: Brian Malloy	Read Replies (1) \| Respond to of 77397

It appears we are in a similar situation: I have some JAN40 Y2K (225 Shares) LYLAH which I will have held for two years by Mar '99. Thankfully they are in my Roth IRA now. One option that you may have not considered is to sell your LEAP once the 2003 CSCO LEAPS are out. You will probably be able to buy several depending on the strike price you go for. Then continue to sit back and let Chamber's et. al. and the growth in the internet take you to higher gains. Another good exercise is to do a little paper drill. Take the initial investment amount that you used to buy your LEAP. See what CSCO was selling for on that date and assume you purchased the shares. Now give yourself the splits that have occured and see how many shares you would have owned if you bought the stock. Finally, take the value of your current LEAP convert to cash and see how many shares it would by at today's closing price. I'm sure you will see that holding onto the LEAP has garnerd more shares. Also, be sure you have the right number of shares that represent your LEAP. For example, my LYLAH contracts represent 225 shares and not 100 shares. Some brokerages are not able to do the appropriate calculations Best of Luck