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

To: George Gotch who wrote (30326)	5/19/1999 11:34:00 AM
From: Bux	Read Replies (1) \| Respond to of 152472

. Sorry thing is though, a lot of people won't take a profit and will hold as it bleeds down. Now I am not short. Actually long this but you have to wake up to short-term reality. George, you haven't changed a bit. You sure sound illogical by saying you are long QCOM and it sure is sorry how people will hold QCOM as it bleeds down. You must be one sorry dude. Myself, I'm holding a few more years so I don't miss the big gains that you did when you failed to buy and hold in January. Fact is, no one knows when the price will go up or down. If you want to play that guessing game, any volatile stock will do, you don't need one with solid fundamentals. Sure is a nice day. Bux

To: George Gotch who wrote (30326)	5/19/1999 12:51:00 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 152472

I'm sure there are plenty of investors who just can't see how a stock like QUALCOMM could go any higher after its recent spectacular rise. Institutional investors, in particular, seem to thrive on rules of thumb that tell them to sell at least some of their positions when the stock goes up a certain amount. The critical factor here is that the people who rush to sell are doing so without any real understanding of (1) growth potential, both short and long term, and (2) management quality, a more subtle factor that tends to be downplayed, when in reality it is the number one factor that should govern ANY investment. That being said, I agree that the urge to take the money and run is prevalent enough to create volatility, as well as some rationale for taking short term profits. When a client asks me about selling a stock like QUALCOMM, my advice is to consider prudent sales of covered calls. When the stock, prior to the split, for example, was near 215, selling covered call options seemed like a reasonable strategy to lock in profits, particularly since there was a likelihood interest rates would rise, lowering the prices of many stocks. But outright sales of the stock, other than to meet emergency financial situations, in my view are, well, just plain silly.