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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (76796)	1/26/2000 6:45:00 PM
From: hlpinout	Respond to of 97611

Excellent and clear discussion on CPQ. I couldn't copy the analysts information but it is a Vcall. -- vcall.com Analyst discusses hedging CPQ (and several other stocks) vcall.com Analyst D.A. Davidson discusses Compaq. (Too early to get replay at the time of this post). vcall.com

To: Night Writer who wrote (76796)	1/26/2000 6:53:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

As most of the people I deal with on the DELL thread (and some on this thread) know, I hedged virtually my entire position buying Feb 42.5 and 40 puts... I was going to sell calls also but decided not to. Here's the PM I sent to several folks on Sunday... I could not get all the 42.5 puts at a good price so got 300 42.5s and 300 40s. Sunday, Jan 23 2000 5:36PM ET To: xxxxx From: rudedog a heads up, I sent this to a few folks I have been discussing DELL with... I am planning to sell near term calls and buy puts on DELL, probably early next week, maybe Wednesday after the CPQ earnings are announced. Meathead said on the thread that he thinks DELL may warn as early as the end of the week and I don't want to be holding a big unhedged position if that happens. I will probably buy 42.5 Feb puts and sell 35 or 37.5 Feb calls, 600 contracts, which will either hedge my position or get me out if the earnings are bad and the stock tanks. The IDC data is available to subscribers and DELL looks like they are flat from 3Q99 in units, and about 200,000 units short of expectations - John Rosser and I have alluded to this on the thread. That can't be good for revenue or earnings and the street will not like it. I also have evidence that suggests that January is weak across the industry including DELL, which will hit them especially hard since January is included in their 4Q numbers but not the numbers of CPQ, IBM , GTW, HWP... so their 4Q numbers could be even worse than the IDC shortfall suggests, since IDC measured only through December. If I am right I will have the option to unload almost all of my DELL holding against the puts and the calls will expire worthless, adding to the effective sale price. If I am wrong I will probably be called ... I will continue to hold a small position, perhaps 6,000 shares...