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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (6507)	2/17/1999 12:34:00 PM
From: James F. Hopkins	Respond to of 99985

TO ALL; IF YOUR INTO PLAYING OIL STOCKS LOOK AT THIS. biz.yahoo.com ------------------ I have been and remain slightly negative ( short term ) on oil particularly the oil service sector. How ever the XLE is weighted towards the bigger oil companies with some exposure to the service sector. This is a longer term play ESM , is a sort of tracking stock to the XLE but seems to have some risk removed. ------------------------ The heart of it is Energy Select Sector SPDR Fund MITTS offer upside participation in the Energy Select Sector SPDR Fund, along with the assurance that 100% of the principal amount will be returned at maturity on February 21, 2006. If upon maturity the Energy Select Sector SPDR Fund has increased from its initial starting value of 22.4936, holders are entitled to receive the principal amount of $10, plus the supplemental redemption amount, which will be calculated using the following formula: $10 x {(Adjusted Ending Value - 22.4936)} 22.4936 -------------------------------- Not a bad deal at all, if it's like they say. You don't risk the principle, but lose from 1% to 2% of what you would gain on the XLE, as a trade off. Plus what ever dividends the XLE may pay in that time frame. They are tradable but may not be very liquid so the ability to stay the course should be considered. These are not made for short term traders. I do not see them ever trading at a premium to the XLE, unless the oil sector goes to hell. Still for risk sensitive folks these are not bad. ------------------ Ask your broker as I'm not a financial advisor. The symbol is ESM. Jim