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Technology Stocks : BORL: Time to BUY!

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To: David Miller who wrote (7784)12/1/1997 8:17:00 AM
From: Bipin Prasad  Read Replies (1) of 10836
 
DM,

Seriously, what's your take on the VSGN/BORL arbitrage opportunity? If
punters are convinced the deal will go through, there's at least a ten
percent advantage in buying VSGN over BORL - yet BORL has greater
trading volume than VSGN. There must be some uncertainty here, clearly
if the deal is called off, VSGN would probably revert to the fours, hence
the reluctance of the market to take the risk despite the chance for a
quick few bucks.... what gives?


There are a few minor inconvenience to consider:
Unless one buys large volume, one has to add fees to convert VSGN
to BORL later. Most of all, I don't like end up with odd lots.

Otherwise, buy in large volume when it's low and sell them back
quickly for few bucks.

take care,

BPP
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