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 : Data Broadcasting Corp. (DBCC)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kevin Podsiadlik who wrote (4129)1/17/1999 11:28:00 AM
From: drakes353  Read Replies (2) of 5102
 
Kevin:

So now, people are going to be unwinding positions. True, this does mean some covering on DBCC, but it also means MKTW will be sold off. IMHO these forces will tend to cancel each other out in the short term.

Not a chance. The arbs won't unwind until DBCC trades at a substantial discount to its MKTW value, probably around 40%

Using Friday's MKTW close, it's safe to assume you wouldn't see wholesale arb unwind until DBCC trades at around $13 (97.5 * .138 * .6 + $5)

Here's a table for the math challenged out there (not directed at you) that shows you where DBCC "should" trade based on MKTW's price:

MKTW-->DBCC
50----->9.14
60----->9.97
70----->10.80
80----->11.62
90----->12.45
100---->13.28
110---->14.11
120---->14.94
130---->15.76
140---->16.59
150---->17.42
160---->18.25
170---->19.08
180---->19.90
190---->20.73
200---->21.56
210---->22.39
220---->23.22
230---->24.04
240---->24.87
250---->25.70

Regards,

drakes353
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News