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Technology Stocks : CFM Technologies Inc. (CFMT) -- Ignore unavailable to you. Want to Upgrade?

To: w0z who wrote (701)	6/28/2000 5:19:00 PM
From: Astro59	Respond to of 721

If you are absolutely positive the deal will happen, you can lock in profit now. Each CFMT share is convertible into .52 MSNT share. MSNT sells for 33. CFMT sells for 15. But 52% of 33 is 17.16, not 15. Blasted market makers are screwing us gain, right? Well if you want the 52% now, here is what to do. Sell short 100 shares of MSNT for 33, buy 194 shares of CFMT. You will get $3300 for MSNT stock, CFMT stock will cost you $2910 (194 x 15). You pocket $390 if I have done the math right. As long as the deal goes through, come Jan. 2001, you get 100 shares of MSNT in exchange for your 194 shares of CFMT and close out your short position. Of course if the deal falls through, you might be in a whole lot of trouble, if MSNT has gone above price you shorted it at. So if this strategy is a little too risky for you and you don't want to do that, you have just learned why CFMT stock is not trading at 52% of MSNT stock price. People think there is a risk that the deal won't happen. :=)