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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (6996)	11/14/1997 6:17:00 PM
From: IKM	Respond to of 9285

Don't forget the tax benefits of the hedge position. Lend the money at only 4%, pay taxes on interest as received. Sell LEAP calls or short the stock, pay taxes on the gain when the converted stock is delivered. Meanwhile, have use of the money for up to five years without paying taxes on it. From short sale proceeds lend the money elsewhere at, say 8% with proceeds equal to about 75% of the original loan. You've captured another 6% interest.