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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (6112)	2/26/1999 12:32:00 AM
From: dj8000	Read Replies (1) \| Respond to of 78493

This is a good observation. My feeling of market is also overvalued and sooner or later we will have a big correction. One tricky thing is if we see last year's correction as bear market. If we do, then we are at the beginning of a new bull market; if not, we are in big trouble. we have a great bull market from 1990-1998, or from 1994-1998 (again, depend on if you think 1994 is a bear market) and a bear market with 1/3 length of bull market will follow. I feel that next year will likely a bear market which is much more scary thing then correction as correction mostly means opportunity. DJ

To: Freedom Fighter who wrote (6112)	2/26/1999 11:54:00 AM
From: Allen Furlan	Read Replies (1) \| Respond to of 78493

Wayne, back to your hedge idea on Sbarro. Today, vlsi received buyout bid from Phillips at 17. I bought vlsi at 15 7/16 and sold July 15 calls at 2 3/16 for net cost of 13 1/4 plus commissions. Annualized yield of approx 25% if deal goes through. Phillips has cash to support deal and I wouldnt mind holding vlsi at 13 1/4. If deal firms up prior to July most of the 1 3/4 spread will become available by backing out of the position. Wonder who bought 15 call with little upside expectation?