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To: mishedlo who wrote (146314)	1/26/2002 10:02:32 AM
From: Tommaso	Respond to of 436258

ZDXXJ [DJX-Dow Jones Index] puts, 140 strike, December 03 LRIMD PUT NASDAQ 100 JAN 030 **** LONG TERM OPTIONS EXP 01/17/04 I guess if I were shorting one it would be KMP because Wolff's analysis suggests that management is stripping out the true value of the stock. But since the income of KMR consists of units of KMP, any drop in the value of KMP would drag KMR down with it. That said, please note that I do NOT at this time hold a short position in either of these. The Enron-like accounting might succeed for a while in producing the illusion of unlimited growth potential, and I would not care to sweat our margin calls to maintain a substantial short position. I did point it out to Patron in order to see what he thought about it, since his judgment would be a lot better than mine on the question of whether to short it now or not. EDIT: There is also the problem that you would have to pay out the distributions yourself while holding the short, and also it might not be that easy to get shares to short. In other words, there's the information and analysis from Kurt Wolff, whose acuity as an accountant I respect; Wolff's timing of stock purchases, however, has not proved particularly accurate, at least in the short-to-medium term. Long term, his ideas usually work out, but that may take two to five years. I'm not a guru; I just found some detailed information and remain cautious about acting on it. Now, I definitely do recommend the ZDXXJ long term puts on the Dow. I think I understand them pretty well: European-style puts selling at less than exercise price and therefore not subject to time-value erosion. In other words, if the Dow should be no higher than it is now at expiration (December 2003), the puts will still make a decent return. If the Dow drops in the interim, they could make a large amount of money. Don't buy them unless you expect the Dow to drop, need I say. And that's your own call.