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Strategies & Market Trends : 50% Gains Investing

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To: Dale Baker who wrote (4434)4/17/1999 6:26:00 AM
From: Dale BakerRead Replies (2) of 118717
 
WMB - I have been out of WMB for much too long. Missed a nice ten-point runup in anticipation of their communications group filing its IPO ( sec.gov.

I could go for the common at $44 right now, but I decided to opt for the January 2001 40 calls instead at $13. I think WMB will hit 90 or better by 1/01; that's a four-bagger on the calls instead of just a double in the common and my upfront cost is only 30% of what I would have invested otherwise.

WMB is a great company in gas pipelines and communications. This also gets me back in the energy sector.

If WMB has a big runup when WCG IPO's, I might - you guessed it - think about selling half and holding the rest. Much too early to tell, however.
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