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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits" -- Ignore unavailable to you. Want to Upgrade?

To: Terry Maynard who wrote (231)	6/4/1998 6:36:00 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 1185

> WOW!!! You have put together a great compilation. I was away for a couple weeks... Here's the announcement for Y. The record date is June 10; the effective date is June 17. Hopefully trading "when issued" before that (June 8?). N.B. 3 shares of CTZ for each share of Y. biz.yahoo.com Stew

To: Terry Maynard who wrote (231)	6/7/1998 3:53:00 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 1185

Terry, 1) Do you know the ticker symbols for the OFIS spin-offs? I think the School Specialty is ABCZ, but I haven't seen anything on the others. 2) Have you ever looked at stock options across self-tenders? I saw that OFIS dropped from about $17 to $14 when the self-tender period was complete. In retrospect, that seems quite predictable - the formula should be something like: before price = tender price * tender % + after price * (1-tender %) e.g.: $17 = $27 * 22.5% + after price * 77.5% which gives "after price" as $14.10. So, the drop seems quite predictable, but if I look at the options - in this case June $17.50 puts (OFQRW) - it seems that the option price went up about 33%. This seems like a pretty good return for something known in advance. A similar upcoming event - Samsonite (SAMC), currently selling at $29, is doing a self-tender for 59% of its shares at $40 and scheduled to be completed on June 17. The formula above would give an after price of: $29 = $40 * 59% + after price * 41% which gives "after price" of $13.17 (assuming everyone exercises their tender option). Now I look at the options - say June $25.00 puts (QDSRE) - trading around $5.50. If I buy those, and then the price drops to $13.17, on June 19 (options expiry ?) those puts are worth $11.83, a double? Is it that simple, or am I missing something? Stew