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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (3967)	1/25/1999 1:23:00 PM
From: bob gauthier	Read Replies (1) \| Respond to of 17183

NEW YORK (CBS.MW) -- Above all else, fund manager Pete Woodworth looks for companies that have a return on capital above the cost of capital. Breaking News China weighs on U.S. stocks Europe fears Brazil knock-on effect Charge hits Citigroup's fourth-quarter Home sales soar to record pace in December Is IDT e-commerce's 'missing link'? More top stories... CBS MarketWatch Columns Updated: 1/25/99 12:03:12 PM ET "That is the single most important financial or numerical measure that I use," said Woodworth, a portfolio manager with giant State Street Research, one of the largest institutional holders of U.S. stocks. The fund manager has been picking stocks for nearly 30 years. His other criteria: "I want companies that have leading positions in whatever business they're in. Then I look for earnings-per-share growth that is well in excess of what the economy or the average stock is offering during the next two to three years. The favorites: CVS, Cisco, Total, EMC Woodworth's favorites right now in each of the three portfolio categories are CVS (CVS) and Cisco Systems (CSCO) in high-quality growth, Total SA (TOT) and BankOne (ONE) in the turnaround group and EMC Corp. (EMC) and Analog Devices (ADI) in the potential home run category. EMC Corp: "It's the leader in very large scale digital computer storage data systems, growing at 30 to 40 percent a year, got a very strong market and technological lead, very strong management and is in everything that's going on in the computer world, including the development of the Internet, which actually fosters the generation of very large databases, and the need to manage vary large databases, all of which plays into EMC's hands"

To: SJS who wrote (3967)	1/25/1999 1:46:00 PM
From: John Lee CA	Read Replies (2) \| Respond to of 17183

SJS, I am new to option trading so have been doing the safe thing - buying/selling calls. Currently long in Feb100's. I have been studying combo plays and would appreciate your comments on the straddle you described. 1. What are margin requirments for such a position? (i.e. how can I tell if I can afford the play?) 2. Since the wide BE range, why wouldn't everyone do this? It seems like a no-brainer. 3. Using both the Feb110 call and put gives about 16 on the spread but raises the low BE to 94. I suspect that is too risky so that is why you used the Feb90? TIA for your valuable comments, John