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Non-Tech : The Critical Investing Workshop

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To: bonnuss_in_austin who wrote (26591)7/25/2000 8:00:49 PM
From: Ex-INTCfan  Read Replies (1) of 35685
 
re: "I'm thinking of shorting JDSU. Because of this."

Look at the chart for AOL at the beginning of 1999. It was added to the S&P on Jan 1 of that year. Also, consider that 50 million shares of JDSU MUST be bought. They must buy from current holders, regardless of when those holders bought the shares. I don't see what bearing the 153 shares recently purchased has on the situation.

Personally, I like KG3's strategy of selling calls into the runup.

If you are looking for ways to play this addition to the S&P, consider that there will be some downward pressure of other stocks in the S&P, since shares in those must be sold to purchase JDSU. Not a huge amount, but a couple of million shares for some stocks. (Can't take credit for this thought -- saw the analysis on realmoney.com)

INTCfan
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