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

To: Daniel Chisholm who wrote (6359)	3/22/1999 5:50:00 PM
From: Allen Furlan	Respond to of 78486

Re; LWN. Short stock under 2? Didn't know you could. As to debt, if you want to see how far down the tubes a near bankrupt company can go look at Hechinger bonds at about 12(HECHH). I thought Leonard Green and his management team could turn around this company but now it looks like I am wrong. I have received dividends but that may also come to a halt. If you are inclined to speculate on junk bonds look at JBAK. Yield to maturity on short term bond should be about 20%, if company survives. Despite very troubling inventory and receivable buildup they still have slightly positive operating results. Also on CPU, an interesting play is to write ratio calls(2/1) and get a reduced basis on stock. CPU has leaps and I chose to write Jan 10 calls against the stock. This is because I believe CPU will suffer some near term weakness when their swollen inventory writeoffs come down to the quarterly results.