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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: rupers who wrote (801)	5/21/2001 8:52:05 AM
From: Michail Shadkin	Respond to of 6873

Rupers - LMNE and MRVC Your conclusion seem to be correct. Looks like a nice hedge - long MRVC and short LMNE the spinoff ratio appears to be between 1.65 and 1.75 Only problem here: LMNE is very heavily shorted - 65% short interest Many have already started this trade. It will be very hard to borrow shares in LMNE. A better alternative might be : long MRVC sell naked calls on LMNE oct strike price 5 - the premium is 2.15 based on friday close This actually offers more upside because of the time premium, while still protects on the downside (2.15 is equal close to 4 points of downside in MRVC) Btw, I dont understand why wallstreet is not giving MRVC any value besides LMNE stake. Perhaps someone could offer a reasonable explanation Thanks you for the idea Michail