Date: Wed, 17 Jan 2007 08:24:00 -0600
From: darkness39@yahoo.com
Newsgroups: misc.invest.financial-plan
Subject: Re: How/Where should I invest $1K in 2007???
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John A. Weeks III wrote:
> In article ,
>  Ignoramus16071  wrote:
>
> > > Speaking of Kramer, I think he just badmouthed Motorola.  Even more
> > > reason to buy it.  :-)
> >
> > Bill, I hope that if we are not allowed to discuss individual stocks,
> > we'd be corrected by our esteemed moderators, but I want to thank you
> > for your suggestion. It seems to be a low leverage and not too
> > expensively priced stock. I will definitely research more into it.

John makes an excellent point below.  Tech stocks are *volatile*.  You
can have a company that looks like it is a great company, winning
business model, great products.  And its name happens to be Dell, and
it has been a dog the last 3 years.

For gambling I would rather gamble on an index (eg Nasdaq).  Or buy a
long-term buy and hold type company (ef Pfizer, although they have had
some very disappointing news of late).
>
> The problem with a company that just shed 30% of its value is that
> it is just as likely (if not more likely) to drop another 30% than
> it is to crawl back out of that hole.

Excellent point.

Let me tell you about me and Nortel.  It had dropped from $120 to $25,
so I thought (growth industry, right?), that it was 'cheap'.

Adjusted for a 1 for 10 recapitalisation, it is now about $2.  Fastest
$5000 I ever threw away.  As I keep telling my portfolio manager, I
keep it in the account to remind me every time I am tempted to gamble.

(if it was in a taxable account, then one can sell the shares, and turn
the loss into an asset.  A good discipline at the end of each tax year,
I find).