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Technology Stocks : Mattson Technology
MTSN 3.6000.0%May 12 5:00 PM EST

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To: John Stewart who wrote (2717)3/20/2000 2:14:00 PM
From: Q.  Read Replies (2) of 3661
 
Today I wrote a few GSNX calls and bought an offsetting number of MTSN calls, as a way of playing the fluctuations between these two stocks. Not very many, just enough for an experiment.

Right now GSNX is trading for 4 1/2 points more than MTSN, which has is pretty much the extreme for the difference in recent trading.

Here are comparative charts for the two stocks, for 2-week and 6-month intervals:
tscn.com
tscn.com

I think GSNX should trade for less than MTSN, based on sales and earnings growth, and on multiples as well. But for now I'm willing to bet that GSNX and MTSN will retain their recent relative trading spreads. If I can close my option positions when the stocks are trading at the same price, I will earn about 2 points per share.
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