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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Brad Davies who wrote (8725)12/22/1997 8:42:00 AM
From: Timoteo  Read Replies (1) of 9285
 
Ron: somewhat off-topic- as a legal mind, what do you think of the Chips and Technologies/Intel merger? Not sure if you've followed it, but basically INTC made a friendly tender for CHPS @ $17.50 a share. I was a CHPS long at the time. The merger has been delayed several times due to an FTC investigation of possible anti-trust activity. According to news releases, the FTC will render a decision early January (I believe the 9th). INTC has already received over 60% of outstanding shares so the only issue is the FTC. IMHO the the FTC will not block the merger. Too much competition in the graphics chip market and AMD and Cyrix have both made inroads into INTC market share. Stock (@ 15) seems like a great risk/reward; especially January 15 calls for a buck. I hold both stock and options so I'm biased. Interested in your opinion.

Best Wishes,

Timoteo
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