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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?


To: LTK007 who wrote (17994)7/24/1999 11:20:00 PM
From: Triffin  Read Replies (1) | Respond to of 56535
 
max90 .. USW/QWST

USW @ 57
QWST @ 30
ratio = 1.90

We Know the final ratio will be betweeen
1.72 and 2.44 shares of QWST per USW for
a 'value' that approximates $69 to USW
shareholders .. Add in best guess for
time to closing, interest rate assumptions,
regulatory hurdles etc .. The arbs would
go long USW and sell short QWST at the
1.72 ratio for now .. and adjust as time to
close becomes more clear/near .. If the
price of QWST stays near the lower value
of the 'collar' .. the higher the final ratio ..
Anyone 'betting' on a final ratio greater
than 1.9 (57/30) could put the trade on
for a 'credit' now ..

Jim in CT ..