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Technology Stocks : Intel Corporation (INTC)
INTC 43.98+3.5%3:44 PM EST

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To: Siva Uppalapati who wrote (3291)9/13/1996 11:42:00 AM
From: JAMES HARRIS   of 186894
 
You would not have a taxable capital gain until you sold the underlying INTC shares. Your basis for said INTC shares would be $70.25 ($30 the cost of the Warrant plus $41.25, the cost to exercise the Warrant.) However, if you are going to stay invested in Intel you should defer exercising the warrants until 3/14/98 their expiration date. In the meantime, use your cash to buy more Warrants. At today's prices the only downside to the Warrants that I can see is the possible loss of the current $1 or $2 premium for the Warrant while on the upside you participate point for point in any price increases in the common stock (INTC). I think the appropriate expression is "It's a no brainer".
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