Re: [CANSLIM] New breakouts

From: Dbphoenix@aol.com
Subject: Re: [CANSLIM] New breakouts
Date: Wed, 10 Sep 1997 16:18:09 -0400 (EDT)

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Top of Thread: [CANSLIM] New breakouts Richard Mandel
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In a message dated 97-09-10 13:37:50 EDT, you write:

<< I am back after a great vacation in Italy  >>

First of all, Rich, drop dead <g>

Second, regarding options.  I used to do a lot of this when commissions were
so high and my portfolio wasn't as large.  Nowadays, however, I don't see the
point.  Given the sharp decrease in the cost of commissions and the sometimes
ridiculous premiums one has to pay for options, you might be better off just
buying the shares.

If your portfolio isn't very large, buy small amounts (there's no longer any
penalty for this--used to be, which is another reason I tried options).  Not
only is it safer, but it provides excellent practice.  When you feel more
confident (I'm assuming you're fairly new at this; if not, my apologies), you
can then take larger stakes and reap the rewards thereof.

Then of course, there's the cost of the contract (the fee your broker
charges, not the premium you pay for the option).  Add it all up and it's not
always as attractive as it seems.

Just my experience.  Take it FWIW.

As far as MDCO goes, this should give you a nice ride.  Good luck to both of
us on it.

- ----Db

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