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Strategies & Market Trends : Value Investing

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To: Wallace Rivers who wrote (10247)	3/29/2000 6:21:00 PM
From: Allen Furlan	of 78715

Wallace, arbitrage is one way to play utilities. Because of the long time line to completion of the deals ,the to be acquired companies often trade at discount to buyout for a prolonged period. Last week I did a 20/20 on fpc Sept 40 over Sept 45 calls at net 3 1/2 per spread. If cpl, the purchaser stays above 20, the spread should widen to 5, assuming the deal closes by then. Announcement was made in August 99 and target to complete is early fall. Others on thread ,join Mike's arbitrage thread for an interesting twist on value investing.

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