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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: SI Bob who wrote (4309)	10/9/2007 5:34:30 AM
From: Elroy	Read Replies (2) \| Respond to of 20435

Sorry, Elroy. I'd like to sell ELN and JPM and put all the proceeds into GOOG short. No problems. I may be able to do that based on Tuesday's close, but I doubt it. Here's why: SI Bob Stock Price Shares Value Cost Change ELN $22.49 1.187 $26.70 $19.11 18% WPL $9.46 2.213 $20.94 $10.25 -8% BGG $25.23 0.812 $20.49 $27.93 -10% JPM $47.44 0.524 $24.86 $43.30 10% SI Bob Total = $92.99 I hate to be a stickler for the rules, but we have a rule #5 which says: 5- Max 50% of the total portfolio at most in any single stock, long or short, initially and upon buying or shorting If you were to sell ELN and JPM based on Monday close that would generate $51.56 cash, or $51.04 after the 1% commission. Your capital would be ($51.04 + $20.94(WPL) + $20.49(BGG)) = $92.47. So you can't $51.56 into a GOOG short since that would be more than half of $92.47. On Monday's close you could only put $46.24 (half your capital) into a GOOG short. So I need to know again what you'd like to do! My recommendation would be to sell ELN and JPM, put the maximum amount into a GOOG short (exact amount to be determined based on Tuesday closing prices), and then with the remaining cash (about $7) either put it into cash, or buy some other stock if you prefer. Lemme know what you think prior to Tuesday's close, pls. Hope that makes sense.