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Technology Stocks : INTC
INTC 41.97-4.1%10:55 AM EST

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To: Dave Kosmayer who wrote (17)3/16/1997 6:47:00 PM
From: Larry Williams   of 990
 
Dave,

The warrants generally track the stock dollar for dollar. If INTC goes up $1 then INTCW tends to follow. When you have INTCW it goes up at a larger percent of your original investment. The risk is that if it goes down (as it has recently) you go down a larger percent.

You can convert your INTCW to INTC anytime before expiration of the warrant (3-14-98) by paying the step-up price of $41.75. There is a very low risk of the warrant becoming worthless. The stock would have to be trading below $41.75.

As far as what to do with the warrants, you can trade them just like stock if you are a trader, or you can hold them until closer to expiration and then convert them to stock and then continue to hold the stock if you are an investor. In either case you get a little more leverage on your money with the warrants, but have a greater risk than with the stock.

Larry
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