INTCW Message Board - Msg: 2983449

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Technology Stocks : INTCW

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To: Andrew Chow who wrote (41)	12/16/1997 9:09:00 PM
From: Pullin-GS	Read Replies (1) of 78

You would get basically the same amount of capital appreciation from by liquidating your cash holdings and buying more INTC. Following up on this thread I have come to the conclusion you don't know how to say "I am wrong". Push this though your models <ROFL>: Assume you have $350 total to spend (all capitol and margin...total) INTC trading $70. INTCW trading $50. INTC and INTCW both go up $5 while holding position. You can do either 1)Buy 5 shares INTC (5 x $70) and make $25 or: 2)Buy 7 shares INTCW (7 x $50) and make $35 Why on earth would you not go for $35? I did, and I liked the outcome. Case in point (again): I just held a position of INTCW for a period of 2 days. I saw a 35% greater appreciation then if I had held INTC. I was able to continue to see appreciation on my other cash holdings without having to dump it all into INTC. I got the same amount of appreciation with 35% less capitol. And saw appreciation on my other holdings, since it was'nt dead in INTC. Your logic makes no sense at all.

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