Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Healthcare.com Corporation (Nasdaq: HCDC)was [HDIE] -- Ignore unavailable to you. Want to Upgrade?

To: TEDennis who wrote (11093)	2/9/1999 9:28:00 PM
From: Emec	Read Replies (3) \| Respond to of 15094

>>What intrigues me is why did he/they give up hope? Did they hear something that negates their short term opinion of the stock's progress? << Let me try to make this real simple for you. chart.yahoo.com^IXIC Petit is a real wealthy guy. Why would he lighten up on HDIE? Let me try to explain this to you in a very simple way so you will be able to follow it. Let's say Mr. Petit is worth $10 million with 1 million shares of HDIE at $3. So, if you take away $3 million from $10 million that means he has investments other than HDIE worth $7 million. Are you still with me? Good. That means HDIE represented about 30% of his portfolio when HDIE was $3. Now HDIE goes to $8. Mr. Petit is now worth $15 million, $8 million of which is attributable to HDIE. That means HDIE now accounts for 53% of his assets. Now, at my age I can live with that exposure but if I was in my 60s nearing retirement, I would, as would any prudent investor, start to think about reducing the percentage of my portfolio that I had invested in stocks and start thinking about capital preservation. I would certainly scale back my dependence on one stock if I was near retirement no matter how bullish I was on a company as i would not have time to recover. I would consider my first responsibility to be to my family rather than to a bunch of sniveling shareholders. Furthermore, perhaps Mr. Petit looked at the Nasdaq runup in January to record highs and figured there was a correction coming so that even though things were going great at HDIE, now was a good time to lighten up a bit as part of a reallocation model he had put in place.