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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (14343)	4/18/2002 8:42:50 AM
From: MCsweet	Read Replies (1) \| Respond to of 78520

BPP Allen, thanks for mentioning it. It looks very interesting to me. I don't much have insight to add over Paul's comments, but will likely take a position MC

To: Paul Senior who wrote (14343)	4/19/2002 5:48:07 PM
From: Allen Furlan	Read Replies (2) \| Respond to of 78520

Paul,thanks for your comments per bpp. I took a small position. Guess this satisfies my arbitrage appetite. Here is an interesting aside. Today I sold 10 more naked calls on brcd, the 04/90 If the speculators should push this stock to 90 in next 21 months I will be in deep kimshi. but my assessment is that there is a very small chance of that happening. The cost of doing this transaction is 10% of stock price or $260 plus the value of the short option or $165. This $425 "investment" is essentially margin availability. If the stock gets down to its fair value($10 in my opinion) the requirement will probably be about what I have already brought in($165). As time passes a "portofolio" of short option positions accumulates very nicely. This is an inverse of value investing, ie picking stocks that are hopelessly overvalued. To those who say too risky I would say that the strategy can work very well with a hedge that significantly minimizes risk. In the case of brcd I do have small positions in emc and ntap which I use as a hedge. If anybody on this thread knows of a site which would help identify good candidates I would appreciate knowing. Good luck to all.