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

To: Trader J who wrote (25410)	1/4/2000 10:59:00 AM
From: Nicole Bourgault	Respond to of 56535

Got of 200 shares only of T.AEL in order to be able to repurchase some if it drops. Nicole

To: Trader J who wrote (25410)	1/4/2000 11:49:00 AM
From: Triffin	Read Replies (2) \| Respond to of 56535

TJ/Wes .. Linux .. I was following your posts with Wes last night .. Got a trade you may want to consider .. Consider doing a "pairs trade" ie .. short RHAT and long LNUX with at least a 35 point premium to RHAT when you set-up the trade .. Using last night's closing prices .. RHAT @ 231 +20 .. with 68.8 mm shs .. MCAP = 16 billion LNUX @ 192 (14).. with 39.7 mm shs .. MCAP = 7.6 billion SPREAD on Close = (231 - 192) = 39 points SPREAD on Open = (228 - 185 ) = 43 points The 'bet' here is that the MCAP differential narrows over time .. I noticed that LNUX got an upgrade this morning and that LNUX appears to have a greater top line revenue run rate than RHAT .. Another point to consider is that this is a 'credit spread' with a positive carry .. Also RHAT's lock-up period expires prior to that of LNUX .. Jim in CT ..