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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (1034)	12/27/1997 5:37:00 PM
From: patroller	Read Replies (1) \| Respond to of 2542

Rich last year actm lost their biggest customer to jbil and slr that was 3com and the reason was that actm could not give them a global present's,they are going to have hard time picking up large contract's because of that.jmho PS I know for a fact that actm new about that for over a year and never said anything about it until their converence call a quarter or two ago.The street does'nt like that.

To: rich evans who wrote (1034)	12/29/1997 12:55:00 PM
From: Douglas Ulmer	Read Replies (1) \| Respond to of 2542

Off topic --- puts and calls: Rich, you've mentioned twice the strategy of buying the call and selling the put with the same strike price and expiration date. As you know, this gives you the same exposure as buying the stock. It seems to me that the net cost should be roughly equal to the margin interest on the underlying stock out to the expiration date. So, you could get the same bang for your buck by just buying the stock on margin. But the option strategy has the disadvantage of ensuring that you'll have a tax event (hopefully a taxable profit!) at expiry. Am I right about the cost? What is the margin requirement to sell the put? Am I missing some other offsetting advantage of the option strategy? Thanks, Doug Ulmer