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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Jan Crawley who wrote (51458)	8/3/1998 4:27:00 PM
From: BostonView	Read Replies (1) \| Respond to of 61433

Thanks, Jan. Longer term, I'm tempted to remain long ASND and sleep with a red circle under my pillow for the next 90 days. BV

To: Jan Crawley who wrote (51458)	8/3/1998 5:25:00 PM
From: Sanzen	Read Replies (2) \| Respond to of 61433

Jan, You arbitrage posting looks right to me. However, if you have to borrow money to buy stratus, then it doesn't seem to make sense. Here was my calculation this morning: Short 4000 ASND (agaist box in my case): $180000(400045) goes in short account and doesn't earn interest. Buy 5334 (4000/0.75) shares SRA and you need roughly $175,000. If I borrow that on margin, the interest would eat $4046(1750000.0925/12*3, that is, assuming a margin rate of 9.25% and the merge takes 3 months to consummate), which almost equals to the arbitrage gain. Am I right? Comments anyone?