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 : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Pierre Aydin who wrote (15403)	1/28/1998 12:16:00 PM
From: Spots	Read Replies (1) \| Respond to of 97611

If it works, you get, if the deal closes in 3 months: 28468 Short 945 sh CPQ at 30 1/8 (56000) Buy 1000 sh DEC at 56 30000 Receive cash from merger (930) Margin interest on 56,000 for 3 mos @7% (say) ------- 1538 Net profit before commissions Of course, if CPQ goes down during the 3 mos, you pay less margin; but if it goes up, you pay more. If it doesn't work (merger falls through), you get 28468 Short 945 sh CPQ at 30 1/8 (56000) Buy 1000 sh DEC at 56 46000 Sell 1000 sh DEC at 46 (or whatever it falls to) (28468) Buy back 945 CPQ at 30 1/8 (or whatever it rises to) (930) Margin interest on 56,000 for 3 mos @7% ------- (10930) Net loss before commissions