Bob Brinker: Market Savant & Radio Host Message Board

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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Investor2 who wrote (3066)	1/25/1998 12:59:00 AM
From: wooden ships	of 42834

I2: What can be said? We "live in interesting times." Today's Barron's had an item of possible interest to those who follow Intel Corp. In Mr. Michael Santoli's "Striking Price" column, it was noted that Intel announced that it has offered to buy back its call warrants before their expiration on 13 March 1998. It was in 1993 that Intel issued said warrants which (split-adjusted) allow the purchaser the right to buy one share of INTC at $20 7/8. There are presently 80 million of these warrants outstanding, according to Barron's. Santoli asks why Intel has entertained this buy back offer. Per Jon Najarian of ONE financial, "they (Intel) think their stock might rally." Adding fuel to this idea is the report that Goldman Sachs "has been a voracious buyer of bullish Intel options on the AMEX." Since the warrants presently trade at parity to the underlying stock issue, Barron's advises long term holders to sell their warrants to Intel and incur the favorable tax rate of 20% maximum rather than convert the warrants to sellable shares. The capital gains on such shares, having been sold, would be taxed at the ordinary income tax rates.

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