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

To: E_K_S who wrote (19604)	8/25/2004 1:15:33 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78760

Eric Strohmeyer: Yes, I'm still following Citigroup, and looking to add to my small position if I can get my price. Company and stock should do okay (I hope) over the next few years - even though they seem to me to make very poor (i.e. costly) loans or business agreements much too often with the wrong people (or countries) at the wrong time. -------- Aside: To clarify, in previous post I meant to use BDC as an acronym for the general term 'business development company', not as a stock symbol.

To: E_K_S who wrote (19604)	8/25/2004 11:46:30 AM
From: MCsweet	Respond to of 78760

Covered calls to hedge ALD, Selling covered calls on ALD make be a good, profitable strategy, but I'm not sure whether it hedges you well in this instance. If the short sellers are right about Ponzi schemes or financial irregularity, you would lose a lot of money on the long side, far outstripping the premium you make from selling the call. By the way, I don't know whether the stock is a buy or a sell or whether selling covered calls on this is good or bad. Just making a general comment on risk. MC