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Technology Stocks : Intel Warrants? Buy, Sell or Hold?
INTC 41.50+5.0%Oct 28 3:59 PM EDT

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To: Andrew Chow who wrote (10)6/1/1996 3:16:00 PM
From: Richard Forsythe   of 36
 
OK, I followed everything you said wrt to stock vs warrents vs options.
Here's where I get puzzled. I'm not into buying options, I'm only long on
stock. So, I have $7500 to spend. Margin doesn't matter because I can
buy either INTC or INTCW on margin; it doesn't affect my decision.

If I buy 100 INTC, that's fine. Or I can buy 200 INTCW, in effect
borrowing $8400 for two years, at a cost of $800 or 5% APR. This
strikes me as a good deal, not allowing for icing such as short squeeze.

Of course, buying INTCW on margin gives me 4x leverage resulting in
top notch gains on a low risk stock.

The only cloud; can I excercize my INTCW, keep the stock and avoid
cap gains?

Am I making any mistakes?

Richard
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