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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: Patrice Gigahurtz who wrote (5279)	11/10/2000 9:38:36 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 5650

You make a good point and I'll have to get back and ask em why , it could be reasons I haven't even thought of. I worked for both the people I'm talking about and tried to pick their brains but I'm sure they didn't confide a lot to me. ------------ As for the 1.15 cost , every time I picked up some PSIX I wrote an equal amount of covered calls out in 2003 at $5 , taking what I got for the calls and adding in commissions I have an average of 1.15 a share invested. I'm still low bidding a batch ( AON ) (GTC) at 1-1/2 but didn't get any at that price so far. If they do come to me I'll ask 3/4 for the calls. -------- What puzzles me is why they are buying the calls and paying as much or more for them than I can hold the stock for by selling to them. It could be they need to buy the calls back to sell the stock, but I'm not sure. --------- So PSIX is not one I intend to flip for a fast 1/2 or so it's a 2yr 3 mo plan unless it goes to $5 and gets called away before then. ( like if it gets bought out next year at anything above $5 )..if so I make almost 400% and I don't see where I'm risking very much. I went out to 2003 just for an extra 1/8 to 1/4 on the premo over 2002, as I have a "hunch" that she will be taken out next year anyway and get called away early, however taht don't make a lot of dif to me as long as she stays above my cost basis. -------------- If she goes kapok well so be it , I played her back from 97 to 99 and she got called from me at 20 but I did well enough that if I lose this bet she still won't have hurt me. When she hit 60 I was stunned and knew there was no way she could be worth taht, and had I been as smart as I like to think of myself I would have bought some long term puts on her. --------------- Let me tell you of a sneaky deal I did on MO when no one wanted her back in 99, I bought at 20 ( legged in on an Up day, towards the end of the day I sold 2001 10 leaps and got over half of my money back, there was not a lot of premo to be made on them but still I had the stock in my account at a cost basis of about 9-1/2, and collected the dividend every 3 months until some jerk called her. I should have sold longer term options and they may not have called her so fast. That may sound silly but you go look at her dividend and figure out what that yield would be if you had her at 9-1/2. ------------- Now they are running her up , I'll wait a bit but I won't miss her if she hits 50. Some how they think if Bush gets in that the pressure on tobacco stock will just go away, what a joke, it may take years, but in time the same thing will happen to her as that one who went belly up not long ago because of asbestos. She was a blue chip company in her day too. The lawyers will never stop hounding her, and cigarettes will always cause some cancer, wait until the "collateral" cases start hitting her from non smokers who were exposed over the years to the "second hand smoke ", it'll come sooner or later and Bush even if he wins won't be able to protect tobacco companies from now on. The writing is on the wall I just hope the suckers can take her up to 50 before I buy the puts. Member 1421660