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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?


To: stockboy who wrote (4337)3/16/1999 3:30:00 PM
From: Rande Is  Respond to of 57584
 
Because today it is a bargain. . .and by April 7 the arb community will have equalized it, meaning there is no longer an arb op.



To: stockboy who wrote (4337)3/16/1999 3:40:00 PM
From: Peter C.  Read Replies (1) | Respond to of 57584
 
I am seeing a slightly different story with TUNEP.

I interpret that for every $1,000 in value of TUNEP you have on April 8th you will get 21.24 shares of T. If you buy today into TUNEP at
14+ per share the value of those shares can go up or down until APril 8th. If they do go up to say $20 the total value of your shares would rise likewise and the number of shares of T will rise accordingly, if however the price of TUNEP goes down, you will get fewer shares on T on april 8th... there is market rsik here folks.

If T stays in the mid $80's on April 8th then TUNEP would remain at or above breakeven IF the shareprice is around $8.50 or above. Any price above that would afford some abritrage opportunity assuming you can handle the market risk on the sharevalues of both stocks.

This is my opinion only.

P.C.