Qualcomm(QCOM) -> SpinCo Message Board

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Technology Stocks : Qualcomm(QCOM) -> SpinCo

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To: w molloy who wrote (59)	7/29/2000 7:52:56 PM
From: Uncle Frank	Read Replies (2) of 172

>> So - what are the potential trading strategies here? Load up the truck while QCOM is trading below $70. Unload when it hits $110. Load up again when it falls back to ??? In the two spinoff cases I have been involved in, I took different courses: dbcc-mktw: Bought dbcc stock 2 weeks before the ipo date, and sold 2 days before the ipo for a 125% return. coms-palm: Bought coms at-the-money puts the day before the ipo. Sold them on the first day of public trading for a 50% gain. But in neither case was I interested in the stock of the parent or the spin off after the event, so qcom-spinco is very different. Since I'm alread loaded with qcom, I'm considering selling some of my holdings a day or two before the ipo, provided there is a large momentum driven run. I will wait for a few days after the ipo, and replace the shares with at-the-money 2003 LEAPS if there is a dip. As well, since my account is in Fidelity, which has a cooperative arrangement with Lehman Bros., I hope to have access to the ipo of spinco shares. I will buy as many as I can, and flip them the first day spinco is publicly traded. Just some ideas... uf

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