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Technology Stocks : ATLPA: Odetics spinoff and IPO -- Ignore unavailable to you. Want to Upgrade?


To: Dr. StrangeLove who wrote (572)5/26/1998 4:01:00 PM
From: Robert Everett  Read Replies (1) | Respond to of 576
 
Hi, Doc.

I think you are absolutely right. I had thought the arbs would hold the stock about at 27 or so, but it looks now like they have been shorting ATLPA and perhaps buying QNTM, at least today. The math you described must make the " smart money" feel there is considerable risk in this deal;otherwise, there would be no 18% risk premium in ATLPA as there is today.

Bob



To: Dr. StrangeLove who wrote (572)5/31/1998 3:09:00 AM
From: Gary Leger  Respond to of 576
 
I get your drift on the 45 day average moving in a downward direction but I think you meant to say the (average) price would be "higher" not lower than the end point, causing the same result, an exhange which does not get you 29. One could sell synthetic qntm covered calls half way through the 45 day period if the exchange was going against them, albeit an imperfect hedge. This would assure one of extra $ if it trended down??