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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (10247)	3/29/2000 12:48:00 PM
From: rrufff	Respond to of 78704

Wallace, I got into DTE recently for exactly the same reasons. I think at some point, PLUG will be spun off to DTE holders, similar to BCE spun off NT. I was looking to add what I felt were conservative plays to my portfolio and added significant DTE, SBC and USW. Over the past couple weeks, these picks have done much better than my others as we tend to get back into value rather than speculation. I did a trade on MCN because of the arbitrage but got out of that and added to DTE for a hold.

To: Wallace Rivers who wrote (10247)	3/29/2000 6:21:00 PM
From: Allen Furlan	Respond to of 78704

Wallace, arbitrage is one way to play utilities. Because of the long time line to completion of the deals ,the to be acquired companies often trade at discount to buyout for a prolonged period. Last week I did a 20/20 on fpc Sept 40 over Sept 45 calls at net 3 1/2 per spread. If cpl, the purchaser stays above 20, the spread should widen to 5, assuming the deal closes by then. Announcement was made in August 99 and target to complete is early fall. Others on thread ,join Mike's arbitrage thread for an interesting twist on value investing.