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

To: Paul Corbett who wrote (7823)	12/2/1997 1:05:00 AM
From: Bill Tucker	Read Replies (2) \| Respond to of 10836

True arbitrage is the shorting of BORL against a long position in VSGN. eg sell 8200 BORL @ 10.125 for $83,025 ( on an up tick ) buy 10000 VSGN @ 7.625 for 76,250 = $ 6,775 profit. This works out at a little over 4% after costs for the approx.3 months until the deal settles. ( This would likely be greater for a pro as interest on the short position could be available ) This kind of return is almost always available as it represents the risk factor against a deal unwinding. The initial offering for VSGN last year was for 2.1 M shares, so its float is quite small.