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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (35310)	11/6/1998 10:10:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

To all, Portfolio notes. 1. I bought another third of R&B Falcon (FLC) yesterday. They reported a loss, but I like their position in oil services longer term. 2. I unwound the Lucent spread conversion I put on less than a month ago. Anyone who is following that trade can use these numbers to figure the return: I punted the stock at 86 5/8, bought back the call for 38 3/4, and sold the put for 3 1/2. This was a small position but is very illustrative of the upside these spread conversions can offer for little or no risk in an income portfolio. Basically, this one paid more than 6%, after commissions, in less than a month. That isn't annualized. True, I may not find another one that good for a year, but, if my cash earns at an annual rate of 5% while I'm waiting, I still have a double digit return in my income IRA. The key is the low risk. If I make a good return, great. But if the stock goes against me, my risk is still a positive or breakeven return, which makes for some nice totals net, net. 3. I also unwound a Sang Stat buy/write. I was going to turn it into a spread conversion, but it ran up before I could get the long put leg on. That is a really good thing. <G> I made 14% in exactly a month on this one. Don't annualize it. It will hurt your head and that type of return is rare. The Lucent experience is even fairly rare. Aiming for 10-20% income annually is realistic, not compounded 182%. <G> Some clunkers will creep in. BTW, I still own Sang in the Cap App portfolio. Good Luck, MB

To: Knighty Tin who wrote (35310)	11/6/1998 2:25:00 PM
From: cardcounter	Read Replies (1) \| Respond to of 132070

I'm interviewing with Q Investments of Ft. Worth today (think investing/trading side of the Bass Bros.) They do a lot of low risk strategies like MNA Arb, Convertible bond arb, and Related share pair arb. Anyway, I skimmed some books (dated late 80's, early 90's) on convertibles and on hedging undervalued converts with a short stock position or with options. This seems to be a solid strategy for creating and maintaining wealth and the historical return data confirms it. I wanted to get your opin on hedged convert investing. Is it still viable, and what are some of the risks, and what are some company characteristics that make for a good converts trade.

To: Knighty Tin who wrote (35310)	11/10/1998 5:00:00 PM
From: don ryndak	Read Replies (2) \| Respond to of 132070

Michael, I understand that one of the conditions that nebraska demanded when the SWC joined the big 12 was that they did not have to play a TEXAS team (a&m)included, during the regular season for the first three years. Now we know why. As for Rick W, the longhorn version, saw him again sat pm, missed the breeders, and watched him catch passes out of the backfield. out and up and looked like he had been doing it all his life. The kid from kstate is an athlete but not the best athlete, would even rank the georgia db in front. But what do I know, I still think that the best qb out of Ohio State was tom matte <g>. on a ask michael burke question, any thoughts on MTC, seems to be basing a bit after the abortive AHP merger, would it be attractive to you as a stand alone or is it the speculative waiting for a suitor stock? MWY is pumping out the marketing releases just in time for xmas, i hope that it poised for a recovery to recent levels and beyond. I need a hit to cover the cost the of modules that i need to buy for the kids for Xmas. I think they should send out their yearly report on along with a game cartridge. don ryndak