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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (4617)	8/6/1998 9:47:00 AM
From: James Clarke	Read Replies (1) of 78669

Oh, you had another first question. You are absolutely right. Management is essentially short their own stock for six months. Then that will change 180 degrees. So if you are interested in timing this, wait a couple months and see if you can pick it up at 12. With a two year time horizon, I was more worried about missing it on the upside. Now that "risk" has diminished (i.e. the stock is falling) so I am waiting to fill my position (I bought half of what I want, and what I want would be a very large portion of my portfolio.) If you're not quite sure, pick a price (remember, the dividend is $1.10) you'd buy it at and see if it gets there. It might). Don't wait too long though. Your judgement about the options is the catalyst for the stock. Options get priced in January, and management would love for the stock to be trading at 9 at that time. A couple days later, you will likely see announcements of share buybacks, cost cutting and new contracts.

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