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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Lynn who wrote (14985)	3/28/1999 9:23:00 AM
From: JDN	Read Replies (1) \| Respond to of 64865

Dear Lynn: I have ALWAYS espoused that theory (once held a stock nearly 25 years and sold around $350 with a basis of about a $1.) But, I have held INTC for about two years now and have rode it UP and DOWN and now it appears to be going UP again. I am beginning to think that in some of these technology issues you should sell them at the high and wait for the low which would have to be well below a 30% drop to make it worthwile. In the "good ole days" I seem to remember stocks going up slowly BUT STEADILY. Now we are so doggoned Volatile I just dont know for sure what the right answer is. JDN

To: Lynn who wrote (14985)	3/28/1999 7:05:00 PM
From: Walter in HK	Read Replies (1) \| Respond to of 64865

Lynn OT >> Buy quality in the first place; put the certificates under one's mattress; sell if one sees dramatic, negative prospects for the (long-term) future or has earmarked and now needs proceeds from some of the shares for something non-stock market (i.e. new house, children's education); or better yet, let one's heirs inherit the stock! << I like your last paragraph. Very well defined, as I learned over time. >>negative prospects for the (long-term) future<< I bought 1000 Magna Intl for 18 in 1987 because it had terrific management concepts. They overexpanded, went to $2, I stuck in there (partly laziness, I admit) but it went to 110 , recently 85. Well managed. The negative prospects were not long term. So, I got saved. >> ... childrens' education ....<< That is where I sold, for a while. Promised 5 children 4 years each and 16 of those years were MIT. >>.. or better yet, let one's heirs inherit...<< When you get nearer, let me tell you about a sign I saw in a travel agency: “If you don't fly First Class, your heirs will “ Walter in Hong Kong

To: Lynn who wrote (14985)	3/28/1999 7:57:00 PM
From: E_K_S	Read Replies (4) \| Respond to of 64865

Hi Lynn - You raise some very good points regarding long term investing and the Capital gain taxes one must pay to move investment capital to another company or market sector. I continue to be positive on Sunw's prospects going forward BUT I am now over balanced in my total portfolio allocation with SUNW's recent price gains. Upon an analysis of my specific portfolio, my "potential" long term capital gain tax would be $10,000 for me to achieve the proper portfolio balance. That's $10,000 that is not working for me in the market. One thought I had was what if SUNW offered a tax free exchange of stock for some type of debt obligation like SUNW convertible bonds that paid a fixed interest payment. Reading through their annual report, SUNW plans to raise over $500 million in capital to help finance their new Silicon Valley facility to be built during the next few years. Perhaps our management could approach the current shareholders with a proposal to convert all or a portion of current shares into a convertible preferred and/or fixed debt issue and treat the transaction as a tax free exchange and pooling of interest. The convertible preferred shares could provide a fixed interest payment (less than what might have to be provided if a new issue was floated in the market) and the principal could be paid back in an equivalent amount of SUNW shares priced at market 2010 or longer. Thinking about this, there would be many ways to structure such a deal and the benefit goes to the shareholder and our company, Sun, rather than to the Feds in higher tax payments. In my specific case, I would convert 1/2 of my current SUNW holdings (subject to the tax free exchange status) to a more stable "bond" like holding (i.e.convertible preferred) that would allow me to re-balance my portfolio without having to pay out a capital gains tax now, but defer it when I actually sell the securities and get cash. ================================================================== I think our company would look at providing such an exchange if enough shareholders suggested that they do so. It would be interesting to hear if any of the other long term SUNW investors might want to participate in such an offering? EKS