Wind River going up, up, up! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Wind River going up, up, up!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Peter Church who wrote (6556)	10/23/1999 10:33:00 AM
From: Ramsey Su	Read Replies (1) of 10309

Peter, the way that it is explained to me, by a guru ...... The WIND INTS situation presents a textbook Arbs 101. Basic strategy is to short WIND and buy INTS, as long as the spread is beyond the .92 established ratio. In most of yesterday's trading, the spread was around 8%. Needless to say, this creates sell pressure on WIND. Furthermore, anyone who is interested in buying WIND would simply buy INTS instead, at a lower price (which I did yesterday). As an example, paying 16.5 for INTS is the same as paying (16.5/.92) 17.9 for WIND, so why would anyone buy WIND at this time? As a result, WIND is unlikely going to move up until the market corrects this inefficiency. The downside is obviously if the acquisition falls apart, for antitrust or any reason. Ramsey

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next