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Technology Stocks : RadiSys Corp
RSYS 1.720+0.6%Dec 11 4:00 PM EST

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To: dylan murphy who wrote (1371)7/2/1999 5:45:00 AM
From: K.F. Lee  Read Replies (1) of 1472
 
Both RadiSys and TEXM are great companies. The earnings are both likely to meet / exceed street expectations. Plus TEXM will add to RSYS's earnings. All these are positive signs.

But the biggest factor is this -- many people were shorting RSYS and buying TEXM at the same time, to play the spread, which kept RSYS prices down for a while. But when all the arbitragers are done, RSYS went up due to all the positive reasons above. Now RSYS is almost at $40 -- this means the spread is much less lucrative than when it was at $29. Also, all of the shorted shares so far have to be bought back. When that happens, RSYS will go up further.

So I am a huge bull on the future of RSYS. I am holding all my shares of TEXM until after the acquisition, and then I will at least wait until the short squeeze sends RSYS up. Then, RSYS should be at over $60 --- and then I will consider selling :-).

KLee
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