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To: Rocket Scientist who wrote (3784)4/6/1999 8:39:00 PM
From: kitterykid  Respond to of 29987
 
Re G* Bonds versus equity. If G* is a success the bonds get upgraded to AAA, become good as gold, and get called away from you as soon as they can be. Then what do you have? If G* is a failure, the bonds as well as the equity will be toast. Both equity and bonds have downside to zero. Only the equity has unlimited upside - that's what I'll stick with. If you're conservative, I'd buy half G* equity and half US Treasuries. Obviously if one can only buy bonds or income producing securities, the G* bonds are a pretty good bet.



To: Rocket Scientist who wrote (3784)4/7/1999 8:27:00 AM
From: Art Bechhoefer  Respond to of 29987
 
Your estimate of $6/share earnings by 2004 would certainly justify at least a price per share of 200. I hope it's good data. You're right that being able to control when to take a capital gain is a point in favor of owning the stock, as opposed to the bonds. However, some investors may be using deferred income accounts, such as a Roth IRA, which would be a very good way to hold the bonds. Art