Too late to bite Apple
Dear Mr. Berko: In January, I bought 100 shares of Apple at $197 because I thought it might run to $300 and split. I thought its new products would take the world by storm and earnings would go sky high. I was right about everything except the price. The stock is now $107 and I'm out $9,000. So I'd like to know if you think I should buy another 100 shares at this price, which reduces my basis to $152 or if, perish the thought, you think I should take a loss. Please tell me your thinking on this stock.

Broker's advice wired wrong
D ear Mr. Berko: My broker has recommended that I buy 1,500 shares of 99-Cents Only Stores and 300 shares of Portfolio Recovery Associates and wants me to sell 100 shares of RalCorp Holdings, 100 shares of Johnson & Johnson and 300 shares of General Electric to pay for the purchase. Please advise.

Greenspan saw bagels without holes
Dear Mr. Berko: Can you explain how the big Wall Street firms used leverage, why they used it, and why it was believed to be so profitable? Please explain it in simple English so I can understand. And can you explain how these firms like Merrill Lynch, Lehman Bros. and Bear Stearns got beaten up so badly when the mortgage bonds they owned fell in market value? I know why you call Alan Greenspan "The Mumbler," but why do other pundits call him "Easy Al?" My investment club would really appreciate your usual clear thoughts.

Not all municipal bonds built the same
Dear Mr. Berko: I'm thinking about building a municipal bond portfolio. I'll be retiring next year and probably have more current income and money than I'll ever need. I'm not bragging. I just had more luck than any man is supposed to have and I'm thankful for it. So I contribute a lot of money each year to various charities and do it quietly. Now I want to invest a lot of money in tax-free bonds because I'm certain that my personal taxes will increase significantly in the next few years. While I can afford to pay much more, common sense asks: "Why should I, if I can legitimately avoid doing so?" I'd much rather reduce the amount I pay every year and make up for it by donating more money to charities I choose than contribute to the government's coffers, only to see the money doled out for things I don't approve and to people who have been given opportunity but eschew responsibility. I've never been in the stock market and it's probably a good time to do so, but I'm neither greedy nor a gambler. So I have decided to build a portfolio of municipals to give me a solid, tax-free income. My daughter, who lives in Delray Beach, Fla., sent me an advertisement for a Miami-Dade County, Fla., Special Obligation Convertible Compounded Accreted Bond, which is insured. The bond will cost $600 per $1,000. Please tell me about this bond and what you think. I would invest in 100 of them for $40,000 profit at maturity in 22 years.

Call Verizon, not MetroPCS
Dear Mr. Berko: I'm considering the purchase of 200 shares of MetroPCS Communications Inc. or 100 shares of Verizon Communications Inc. I'm 45, and this investment will be in my Roth independent retirement account, which you advised me to set up several years ago because the money won't be taxed when it comes out. Anyhow, I need your help on making this selection. MetroPCS seems to be a more aggressive company, but Verizon seems to be a more stable company. I want to choose the best issue. I'm also thinking about buying 200 shares of Sprint in our joint account as a gamble because, at $3.50 a share, I think it might be underpriced.

Hedge funds earning their just due
D ear Mr. Berko: There's big trouble in the $3 trillion hedge fund industry. Many have lost massive amounts of money because the market has gone against them, and thousands of hedge-fund employees are losing their jobs. The hedge fund sector is a very vital sector of our economy and I've not heard a word from the Department of Treasury or the Federal Reserve about helping it in this economic crisis.

Intelligence faulty about Iraq stocks
D ear Mr. Berko: My Merrill Lynch stockbroker has two foreign contacts in the Middle East and he and they believe that there is a tremendous opportunity to make money by buying stocks on the Iraq Stock Exchange. He says it's increased by 25 percent this year because the country is on the verge of an economic expansion that will be felt throughout Iraq and the Middle East. He wants me to invest $100,000 in Iraqi banks and insurance companies that he and his two people believe can easily triple in value over the next year. Please tell me what you think about this.