Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Emile Vidrine who wrote (8378)	11/5/1997 7:22:00 PM
From: Maxwell	Read Replies (2) \| Respond to of 25960

Do you want a ride of your life? Lately CYMI stock has been hit pretty hard due to various rumors. This is what market inefficiency is all about. It will take some time to restore CYMI image, through a few (or maybe 1) good quarters of solid earnings. I am thinking about racking up at least 200-500 contracts of CYMI MAY 98 calls at various price. If CYMI produces solid earnings and a few new brokerage houses start to follow CYMI will be a homerun. I remembered last year on AMD thread, one gutsy investor bought 500 AMD calls contract for $60K that expired in 1 year when AMD was at $11. When AMD hitted mid 40s he liquidated his position for at least $1.5M in profits. This could happen to CYMI. Any gamblers out there? Does $1M sound good to you? If you think CYMI hits $40 by May you can only make 80% returns with the share you buy today. But if you buy options, 3-10X is conceivable. Maxwell

To: Emile Vidrine who wrote (8378)	11/5/1997 7:27:00 PM
From: Jess Beltz	Read Replies (3) \| Respond to of 25960

Emile, the conversion price is fixed at $47. It is exactly like the exercise price on a call. If I'm a short seller, and I short at ANY price below $47, and use bond conversion to cover the short position, I've lost money. There are two things to consider: (1) The share price must be above $47, or conversion doesn't make sense. No one would pay $47 via the bonds for Cymer shares if they're selling in the market for less than that. (2) Were the short seller stupid enough to use the bonds to cover the short position with the price of the shares less than $47, he/she's automatically lost the difference between $47 and the share price on every share covered. jess.