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Technology Stocks : Merrill's Internet Basket (HHH)
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To: Randy Ellingson who wrote (2)9/24/1999 4:19:00 PM
From: James F. Hopkins  Read Replies (2) of 42
 
Randy; It's a trust..while it can get off bigger players will
arbitrage it back on. Like if it's trading at a premium they
put stocks in the trust and get HHH ( UTs ) to sell, if it goes to
a discount they trade the HHH ( UTs) in at the bank for stocks.
Expense in the swaps will cause it to trade more often than not
at a slight premium.
It's likely to be traded out of a short account more often than
a long account. Internut players will go long their best picks
and on down days instead of selling their stocks will just
short the HHH , as it's cheaper to short the basket than
go short or sell each stock, also they will be hoping that their
picks don't drop as fast as the basket, & or go up faster.
HHH will be used as a hedge more than a long position.
I'm really glad to see it.
Jim
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