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

To: Freedom Fighter who wrote (6144)	3/1/1999 3:00:00 PM
From: Allen Furlan	Respond to of 78501

The vlsi hedge position can be improved as follows, Buy stock(16), sell leap year 2000 12 1/2 call at 5 3/4, net cost of stock is 10 1/4. The gamble here is that deal closes in next 6 months in which case option essentially trades as cash settlement option. Downside of position is that failure of merger causes option premium to increase and position must be held for small long term gain or reversed for probable loss. I put on 800 share and 8 option short today.

To: Freedom Fighter who wrote (6144)	4/11/1999 5:54:00 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 78501

Wayne, since you have interest in reasonable merger plays please review this. biz.yahoo.com I owned aati and did quite well with the company last year. Very good management and reasonably priced with book of 13.5 and 170 million in revenue last year. Because the company has so few shares outstanding the cost to aeon is about 100 million. They have strong financing lined up and I would rate probability of deal completion very high. Companies would like to close by end of June.(might be optimistic). In any case this calculates as an approximate 40% yield on buy at 23.5 and take out at 26 in three months. Good luck.