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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?


To: Linda Kaplan who wrote (7638)11/21/1997 8:33:00 PM
From: i-node  Read Replies (1) | Respond to of 10836
 
Those were the exact leaps on which I cancelled my buy order yesterday. If the stock is going to be icky for a while longer, there's no point in tying up the money now.

I find it interesting everyone seems to have concluded the stock is not going to do anything "for a while". While it may well take longer for the stock to get where it is ultimately going, I see nothing to convince me that we are looking at some substantive decline in volatility. You could almost view it as an opportunity.

What is it about this deal that is going to trigger decreased volatility. While certain transactions can cause this (announcement of a pending buyout of company x at $y per share usually puts a celing of $y on the price until the transaction is comsumated), I don't think this is the case here.

You could argue the dilution will have a "dilutive" effect on volatility, too, but I haven't seen any real evidence that VSGN doesn't bring its own volatility to the combined entity's price. The integration of the companies will provide ample opportunity for Del to make press releases, and certainly he'll be motivated to bolster the stock price.

I certainly plan to buy more Jan 2000 leaps over the next month or so....

David