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Technology Stocks : Intel Warrants? Buy, Sell or Hold?
INTC 41.35-0.4%3:59 PM EDT

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To: Jules B. Garfunkel who wrote (11)5/31/1996 5:49:00 PM
From: paul flint   of 36
 
What a day, huh? Proof-positive
that the premium is as low as it will go! In the past, INTCW always trailed INTC to the upside. If INTC went up a point, INTCW would go up 5/8 or 3/4. If INTC went up 4 points, well... I actually can't remember when that happened last! But if it did, then INTCW would have gone up maybe 2 1/2 or 3 points max. Not today!

That's it, friends! The premium is at a minimum! Every point in the stock to the upside will be followed by a point in the warrant. More or less, of course... <grin>

And, any further excitement on Monday, and short-covering could drive the warrant up FURTHER than the stock! There really is a shortage of these warrants. Look at the volume today! That was a good chunk of the total outstanding. And 6 million plus are supposedly still short? Lots of possibility for an interesting situation...
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