SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Digital Equipment Corp. (DEC)
DEC 15.40+0.6%Nov 18 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: harkenman who wrote (2903)2/6/1998 12:05:00 AM
From: George Dvorsky  Read Replies (2) of 3276
 
harkenman and all,

Let me repeat for all that may have missed it. Keeping DEC shares only makes sense if you think the price CPQ is paying may be re-negotiated higher or that CPQ is due to fall (in that case sell both). DEC is fixed to the CPQ price so you are more leveraged on the way up with CPQ shares (unfortunatly on the way down too). It could have the added benefit of shielding you from a meltdown if the takeover deal falls through though.
Read:
Message 3270316
for the math.

Think about it. Let me know if I am not making sense.

As a disclaimer, I only hold April 50 calls I bought for $2 which I locked in $7 profit with some Feb. 60 puts (to protect against a major pullback), but if I had held DEC common, it would have been CPQ right after the announcement.

gd
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext