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Strategies & Market Trends : Arbitrage Plays

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To: debrahaugen who wrote (208)4/20/2000 6:16:00 PM
From: Allen Furlan  Read Replies (2) of 376
 
Debra, re your coms/palm play. How do you offset palm, Brown and Co has no shares to short? I have been tempted to sell the palm calls against coms stock but am still unsure that the spinoff is certain( if certain this would be a no brainer). I believe that palm will behave like a rock falling off a steep cliff if and when the 550 million shares hit the float. If you are into spinoff speculation look at dztk, which will spin off .8 sh of pfsw this summer. The calls are rich and I played this by selling Sept 15 calls on dztk with a net cost of 12 on the coverd position.
Has anyone on the thread looked at wlmr? The lbo is backed by financing from Fleet Boston, Chase and the GM pension fund. Reasonable yield of 18.5 for 17 if deal goes through.
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