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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (19662)	5/25/1998 12:26:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 70976

Brian, Never before, has Amat been faced, with a melt down of 35% of its revenue.. True, that Europe and domestic business should offset slightly, but smart money will wait to see, how the Japanese mess, unwinds (Imhop).

To: Jacob Snyder who wrote (19662)	5/25/1998 1:10:00 PM
From: andy kelly	Read Replies (1) \| Respond to of 70976

Jacob Thanks for your latest post on LEAPS. I also looked at the CBOE numbers on Friday and came to a similar conclusion from a different viewpoint. I set out to figure a LEAPS advantage over stock ownership for INTC and AMAT. I try to simplify calculations so rounded numbers. If AMAT stock doubled, price would be 67. If LEAP doubled, stock price would be at 60 by expiration. Therefore, LEAP advantage by my definition would be 67-60 divided by 67 or 10%. Same calculation for INTC gave me 15%. Conclusions: 1. INTC LEAP a better buy than AMAT LEAP at current prices. 2. Even assuming a price double in 2.5 years, which is a lot more than historical price appreciation, neither LEAP is all that much better that holding the stock, with much greater downside. Of course, this assumes that both stocks have an equal potential for price appreciation between now and Jan '01. I bought a few INTC LEAPS on Friday just to try them out. Never bought any before, but will mainly stay with stock ownership unless LEAPS get a lot cheaper during a crash or something like that. andy