Hello, 49r
Hope you enjoyed your scuba golf.
Kevin and I sometimes trade options on the same stocks and I noticed you do too. Since you went newly long on USRX based on technicals ... how do you fold in news like the following? Or does it matter? Thanks.
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ROCKWELL INTERNATIONAL CORP (ROK) 66 1/4 +1/2. A Wall Street Journal report that company will flood the market with millions of high-speed modem chips is hurting the shares of leading modem maker U.S. Robotics (USRX 66 7/8 -1 5/8) this morning. According to the president of Rockwell Semiconductor Systems division, Dwight Decker, company will send over 100,000 chips to modem maker this month, which will be available for consumers by the end of the month, adding that he expects 3 million or more "chip sets" to be shipped by midyear. ROK, the world's leading maker of modem chips (with about 70% of the world market) is going head-to-head with the leading U.S. modem maker. This extremely aggressive plan to pull market share from USRX, which uses its own modem chips, indicates that U.S. Robotics will not be alone in the early stages in providing modems that transmit 56,000 bits of computer data per second. And, though USRX has the name recognition and an early start on promotion of the new higher speeds, it is expected that Rockwell will announce today that it has lined up more than 130 modem makers to use its chips, about half of whom will begin shipping the new modems by the end of March.
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