I have an IRA account with Schwab, and I can tell you as an absolute fact after having checked with them more than once and with more than one broker, they do not allow option activity in an IRA account. More correctly, I think, they only allow option purchases in margin accounts, and they do not allow an IRA account to be a margin account.
I have a question related to INTCW warrants. What happens if Intel splits indirectly by doing a 100% stock dividend ? Warrants do not
receive dividends, normally anyway. I know that a "normal" split also splits the warrants (I have held the warrants for two years through the last split), but what about an indirect split via stock dividend ?
Frankly, I wonder about the wisdom of a split. The no. of shares outstanding is awfully large, 60% more than IBM. A 2:1 or 3:1 split would run this up even more. Intel is in a unique position: there are large companies, and there are companies with high profit margins, but it is almost unheard of for a $20 BILLION to have a 60% profit margin and a growth rate >> 30% per year. Maybe even completely unprecidented, in fact.
Final comment: several years ago there was a front-page WSJ article (right column) which speculated that by the year 2,000 Intel would be the most profitable company on the face of the planet (total profit in absolute $, not profit margin). I have lost my copy of the article, does anyone have it, and, more significantly, how does Intel stack up today, in 1997, but 2-3 years subsequent to the WSJ article's speculation. |
