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To: donald sew who wrote (28109)	11/10/1997 10:40:00 AM
From: Kevin	Read Replies (2) \| Respond to of 58727

Thanks for the quick response. >>>If we see 7900 before XMAS and if you agree that IBM moves with the DOW, where would that put IBM<<< I agree that IBM moves much closer with the DOW than the SOX based off of a quick linear regression model I did comparing IBM/DOW and IBM/SOX. If you're right about 7900 before Christmas, that would be a 267 point gain. IBM is 5.163% of the DOW, so it's share 'should' be 13 3/4 points. However, my regression shows that IBM has a beta of approx 1.2 vs the DOW indicating it moves 20% faster than the underlying index. With that assumption, IBM 'could' be 16 1/2 higher. Thanks for your read.