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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (40209)	5/23/1999 4:10:00 PM
From: Haim R. Branisteanu	Respond to of 94695

Hi Judy, as far as I know on of my friends at a high 9 figure hedgefund initiated such trade after we discussed the possibilities of such a pair trade. As a retail investor I am not treated the same (for margin requirements) so I gave up on the stock pair, but sold calls and puts on LU and bought calls on NT it worked out fine for me. My suggestion came after getting involved in financing telecom gear late last year and learned of the sales practices adopted by LU. (e.g. financing below market rates which in effect lowers the final sales price of the telecom equipment). The hedgefund was suppose to participate in the financing transaction of my party, by selling puts on the debt. As to SI tread participants it is amazing to me how many do not do their home work or are taking business/sales/profit growth for granted. Or maybe they are clueless as to the interpretation of corporate financial reports and the trends one can spot there. After posting the chart of LU & NT nobody even commented on the discrepency of the stock price to sale multiple between LU and NT. The issue of value and inherent risk in investing was stashed aside and it worked for the last 2 years. As specific to LU and CSCO I think they are in a distribution pattern and are the top holdings in almost any fund which has tech or growth attached to their name. As soon as the labor market will soften a bit or inflation will continue to inch up, those stocks will get hit badly. Pesonally I am not a position trader and short term trade work fine for me. The best are those that last 1 hour or less and I walk away with several hundred dollars.<g> BWDIK Haim