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Technology Stocks : Intel Corporation (INTC)
INTC 47.14-6.1%Feb 10 3:59 PM EST

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To: Jay Labadini who wrote (6595)12/18/1996 2:00:00 PM
From: L. Adam Latham   of 186894
 
Jay:

Re: INTCW vs INTC.

I am by no means an expert on this subject, but Intel's annual report explains the warrants. See the "Common Stock" section of:

intel.com

The excercise price of the Warrants was $38.75 as of 12/30/95 (I don't know if it's changed since then), so the price of INTCW should approximately track INTC, except be about $38.75 lower. Today at 1 p.m. Central, INTC was 134 1/2, and INTCW was 95 1/2, the difference being $39.

Since INTCW tracks INTC, but is lower in price, the percentage gains will be higher for INTCW (i.e. $4 of $95 is a higher percentage increase than $4 of $134), so you could see a higher percentage return on your investment. I'll have to leave it to others to explain the down-side of trading INTCW.

Adam
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