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To: Electric who wrote (28131)	11/11/1997 10:04:00 AM
From: Kevin	Read Replies (2) \| Respond to of 58727

>>>I would wager with you (my favorite thing to do) that IBM would not join a move up. Looking at its chart, I bet it takes well into Q2 of 98 for it to move over 110<<< Electric. It's very possible...IBM is big and not typically a fast mover. However, if we see a rally in the next several weeks and IBM tests $110 my calls will do just fine. Don't forget my $116.50 target was based on where IBM 'should be' if the DOW jumped 265 points or so. I used the stock's percent impact on the index versus the total point gain to generate that number. And this target was only for conversation. In my original post where I stated that I had bought the calls, I said my target was $107-108 in a short while. Maybe our opinions on IBM are closer than you think... >>> When you (I think it was you) said their beta was 1.2 I was shocked...<<< That was my calculated beta vs the DOW using weekly data over a 2-year period. FYI, their beta vs. the SPX is 1.08 I was actually as surprised as you that the beta vs the DOW was so high until I compared a 2-year normalized graph of them and saw how IBM outperformed the DOW. >>>How are you doing? Adding to your CPQ'ies at these low levels?? <<< I'll probably add to a few of my positions. I may actually short puts on CPQ today. I like the base at $60 and think the stock will move higher. Talk to you later. Kevin