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

To: Piotr Koziol who wrote (89032)	1/22/2001 11:35:09 PM
From: Elwood P. Dowd	Respond to of 97611

From The Zoo: U.S. Army buys 80,000 Armada portables by: the7things 01/22/01 11:08 pm EST Msg: 212919 of 212929 U.S. Army buys 80,000 Armada portables 22 January 2001 10:45 AM CST PricewaterhouseCoopers, which recently won a three-year, $450 million contract to design and deploy a distance learning solution for the U.S. Army, has selected Compaq over IBM to provide all of the PC technology for the project. The result is a three-year deployment of 80,000 Armada M1200 portable PCs valued at $100 million. Closed in December, the deal provides soldier-students with a laptop, carrying case, printer, accessories, warranty and repair, Internet access, e-mail account and technical support services.

To: Piotr Koziol who wrote (89032)	1/22/2001 11:43:19 PM
From: Andreas	Respond to of 97611

Piotr; Interesting post. However, if dell has been selling puts (as the post states), and the price of dell stock has gone in the toilet (which it has), it is very likely that (depending on the strike price) dell will be stuck buying a bunch of stock at prices exceeding current market price on date of put expiration. The poster is correct that no loss is recognized at that time. However, if dell chooses to preserve cash and buys back the puts instead (at higher prices since dell stock is in toilet) then a loss will be recognized. Interesting choice, (i) preserve cash and take loss on put transaction or (ii) burn a lot of cash but avoid loss recognition.