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No. of Recommendations: 10
Tim wrote:

3) It is MUCH easier to take the "long-haul" investor approach if you got in @ 38 bucks (as I did)- any crap regarding sticking to your guns if you got in at 120+ is advice coming from someone who doesn't have their whole lot at that price. WE DO NOT KNOW IF IT WILL EVER RECOVER TO THAT LEVEL! I sold at 190 and at 240 (pre-split) and have tried to time the market to get back into it ever since. Bought Redback instead at 250 (pre-split)- smart huh?

4) This is real pain with no easy answer- if you bought in at 100+, I feel your pain.

No doubt it is difficult to see one's investments get cut in half or much more after purchase. Yet, that is a risk we take as investors and there are strategies to ease such pain. I do use dollar cost averaging and yes, I did buy last year so the pain is not really as much of a factor for me as someone who paid a higher price. However, I'm net negative on this investment by a large percentage as well. In fact, most people are negative unless they bought in the first few days of trading. I bought more yesterday during the last 15 minutes because I am focused on the future. I didn't get the low price of the day, but I am investing for what the share price will be in 2001, 2002, 2003, 2004....

I have experienced plenty of pain in investing due to overall market conditions and individual stocks that were hit hard due to various events. 1987 was not a 'happy' autumn, but looking back 13 years to that event I did the right thing - nothing. The Gulf War was another 'painful' factor in the early 90's. Yet, looking back I did the right thing - nothing. The fall of 1997 and 1998 were 'painful' events. Yet, looking back I did the right thing - nothing except added to my positions due finally hitting a point in life where family income allowed us to invest on a consistent dollar cost average basis.

I have owned stocks that were trashed hard and I mean really, really hard. Maximum pain threshold and I took big losses on all of them. Callaway Golf, Broderbund, Telefonos de Mexico, Iomega, York Group and most recently Tommy Hilfiger. None of their problems have anything in common with the valuation correction in the current technology sector. I still like (love) companies like Foundry, Redback, Juniper, Brocade, Sycamore, Siebel, i2, Aspect, Ariba, eBay, Yahoo!, DoubleClick, Cisco, Intel, Oracle, Qualcomm, Gemstar, Echelon, JDS Uniphase, EMC, Network Appliance and many others. Even if I had purchased all of them last Friday, I like them a lot for the long haul. Of course, I have held most of them for many years so my pain is not any where near making me want to 'vomit' as a previous poster mentioned. Instead, some of the companies have come close to their October/November lows and I see that as excellent opportunity to be buying more for the longer haul.

Yet, investing requires the most important part of the equation to come up with the answer. That is time. There will always be pain along the way. Being patient requires one to weather it all - the good and the bad and to buy additional shares at appropriate points when presented. Based on the hypergrowth in the next generation networks segment, I would be surprised if Sycamore does not at some point in the future climb to new heights based on growth and execution. I'm willing to give it the 'time' it needs to do that. I'm not a trader, so I wasn't attempting to 'get out' at absurd heights. That's never been a forte of mine, so I use the longer term formula which includes time and patience. I also don't use margin and have the cash to add when I feel appropriate such as now. If I don't have the cash - I don't add.

Hence, if you want to call my advice at sticking to your guns in the investment as to why somebody through their research chose to invest in Sycamore at a higher price 'crap' - then so be it. Call it crap. I'm sitting at a negative in this investment as well and due to the number of shares I bought my pain may hurt even more net dollar wise. Considering SCMR is back to levels soon after the IPO last October, I surely wouldn't be selling at these prices. I bought in November and December - so I feel the pain to the tune of -30 to -45%.

3) It is MUCH easier to take the "long-haul" investor approach if you got in @ 38 bucks (as I did)-

I'm glad you were able to take advantage soon after the IPO to get in 'on the ground floor'. In fact, you might be the only investor on this board who is not feeling any pain like the rest of us. The rest of us will simply have to ride it out if we still believe in the future revenue growth for Sycamore as I do.


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