Two things, first the LEAPS, second is the Cyberstar partner.
Ok, well now I'm more confused about LEAPS than before ;) I need to figure out what in the world to do depending on different scenarios. So is it better to exercise just before expiration, or at a high near expiration for the 2000 LEAPS, than it would be to exercise earlier? I mean, and bare with me here, doesn't it make sense, if you plan to exercise, to do it irregardless of the premium price, thus looking for the maximum differential between the strike and actual price? However, if the premium makes it better to sell the option and buy the shares, like if LOR went up to 40 next month, I'd imagine that the 2000s would be sky high, so it would maybe make more sense to sell the options, and use the profits to buy the shares. I'm still confused.
Anyways... on to the Cyberstar part...
I think a buyout of LOR is unlikely based on its business model, it is looking to acquire, not be acquired. As for WCOM being the partner, that was discussed in fairly good detail both on this thread, and the Motley Fool. WCOM is a suitable partner, at least in my eyes, but it may not have the spare cash to spend on Cyberstar. Others thought that other telecom players, older ones, like a Baby Bell or such would be a more likely candidate. I contended that cable companies, TCI and Time Warner in particular, would be good possibilities since their services already depend a great deal on satellites, and their planned roll-outs of cable modems furthers the need for high-speed telecommunications capabilities that Cyberstar will provide. I think this topic is worth revisiting, and I will try to start up the conversation on the Fool as well.
Good day today, going for a new all-time high!
geoff |
