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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Land Shark who wrote (17732)	3/6/1999 7:40:00 AM
From: Dave Shares	Respond to of 122087

LEVL <<OK, so it gapped on the buyout, but, it's a share swap deal. There are two risks to play here, 1) that the deal falls through, and 2) that INTC share value tanks (as you say by 12 pts or more). CS Boston just downgraded LEVL to a hold for a reason.>> Yes, one can play the risks you outline above. Or one can short INTC and long LEVL for an arbitrage play, as there looks to be a slight premium. On the arbitrage play, the risk is that the deal does not go through. LEVL is rated a hold at this point presumably because the upside potential is limited to INTC's upside potential as opposed to LEVL's business fundamentals. I am guessing that CS Boston has LEVL as a hold because they also have INTC as a hold. Whatever the case, I don't see much of a play for the capital involved in making a play. My only point was that unlike other stocks which may retreat after news spikes it up because it was pushed too high, a gap on a buyout will only retreat for the reasons you have already pointed out above. Easier to go short on companies rallying on hype, scams, etc. I'm not ready to go out and tie my money up trying to short INTC. David