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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (7412)	8/10/1999 3:36:00 PM
From: GVTucker	Respond to of 17183

jhg, RE: But how are the arbs making a buck in this situation? Buy DGN, short EMC. Specifically, short .3262 share of EMC for every 1 DGN share you buy. Let's say you buy 10,000 shares of DGN, then you would short 3,262 shares of EMC. 10,000 shares of DGN would cost $166,875 right now, while short 3,262 EMC would generate $174,517 in proceeds. When the deal gets done, your 10,000 shares of DGN become 3,262 shares of EMC. Deliver those shares to cancel out you short. Pocket the $7,642 difference from the original trade.