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Politics : Ask Michael Burke

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To: Tim McCormick who wrote (20454)	7/13/1997 9:44:00 AM
From: Stratajema	of 132070

Hi Tim. The SI gods have changed my name since you last wrote me but my SI birthdate remains unchanged! I have an options straddle on ADCT which is now trading at 37x the company's endorsed projected EPS. This company is exhibiting 100% year over year growth BUT sequential quarterly growth has been reduced to 8% during each of the past two quarters. I expect a slowdown in their cable business and their ATM mux business. ADCT needs to buy more companies in order to get the top line growth rate accelerating again. Acquisition activity could pick up again over the short-term. MB might say that simultaneously buying calls and puts would be foolish and it is. But I'm no fool...just when you think a stock should go down it turns around and goes up 50%. I expect ADCT to have enough volatility between now and September to justify my approach. Good luck. - David

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