HDTenEightyP/NetNews huggingface dataset:
From: ekp@mcnc.org (Edward Pavelchek)
Newsgroups: misc.invest,sci.econ
Subject: Re: Should we limit the shorts life time.
Date: 27 Jul 92 23:44:22 GMT
Followup-To: misc.invest
Organization: Good place for a disclaimer

In article <sehari.712086539@vincent1.iastate.edu> sehari@iastate.edu (Babak Sehari) writes:
>Options, which acts as an insurance for some investors; could be bought
>and sold by people, who are interested in this type of transaction.  Say
>you invested on ATT and bought 100 shares at $40, you could sell a leap
>of this stock at $45 for $5, and protect yourself from down side price
>fluctuation up  to %12.5.  This transaction does not increases the total
>number of stocks, so it dose not influence the price of the stocks. So one
>by selling calls does not drive the prices down, the same is true by

This seems untrue to me, but my arguments are probably sloppy.  Anything
which can act to assuage a sale must in some way resemble a partial
sale.  Surely, for any option you wish to buy, the writer can cover
himself in the real market.  Arbitrage between Chi and NY can easily 
transmit selling pressure in options to a lower price in NY.

Consider buying a call.  If the person writing it is 'covered', then
his stock is off the market for the duration of the option. This reduces
supply and drives the price up.  As partial decisions, options should
have less effect than stock purchases or sales, but arbitrage should
transmit that effect.  If you think ABC is going down, and buy a put,
then I will take your money and sell my ABC now.  If it goes down, I buy
it back from you at a lower proce than I sold it, plus I have the
premium.  BUT I SOLD IT WHEN I WROTE THE OPTION.  Thus options do affect
the price of your stock, or at least they certainly should.
-- 
And if your hand or foot offend you,         Ed Pavelchek   ekp@mcnc.org
  Cut it off, lad, and be whole;
But play the man, stand up and end you,
  When your sickness is your soul.           AE Housman
Newsgroups: misc.invest
From: rot@mickie.id.macsch.com (Rohit Thukral)
Subject: Re: British Pound rates
Keywords: Exchange Rates
Reply-To: rot@mickie.id.macsch.com
Organization: MSC, Los Angeles
Distribution: misc.invest
Date: Fri, 24 Jul 92 17:15:15 GMT

In article <1992Jul24.162517.3719@cco.caltech.edu>, watson@sampson.ccsf.caltech.edu (Stephen H. Watson) writes:
|> 
|> I.e., is the dollar going to get weaker against the Pound anytime
|> soon, or is it expected to strengthen?  (Just a simple question :-).
|> 

The major central banks have been buying up dollars ever since
German interest rates went up. I suspect that this monetary
intervention will continue to support the sagging dollar.
I wouldn't rush out to buy pounds today.

Rohit
-- 
#include <StdDisclaimer.h>
Newsgroups: misc.invest
From: kst@uvacs.cs.Virginia.EDU (Kevin Treu)
Subject: Cray Computer: When to bail out?
Originator: kst@hemlock.cs.Virginia.EDU
Organization: University of Virginia Computer Science Department
Distribution: usa
Date: Sat, 25 Jul 1992 16:59:16 GMT

I got into Cray Computer at 4 1/8 several months ago.  I have become convinced
that playing around with individual stocks without great expertise is a
mistake, and want to get out of the practice as soon as possible.  Now 
Cray Computer is down to 2 3/8.  I'm interested in some net-advice regarding
this specific stock.  Do I remain patient, confident that at some point it
will be rewarded?  And if not, how do I know when it is time to cut my
losses?  Thanks in advance for any advice.

As far as the stock market goes, it's mutual funds only for us from now on...


-- 
Kevin Treu                  University of Virginia
kst@cs.virginia.edu         Department of Computer Science

Go PIRATES, PENGUINS, PALADINS, HOOS and HORNETS!
From: bill@dewey.edsci.wisc.edu (Bill Roth)
Newsgroups: misc.invest
Subject: What is the inflation rate for 1992?
Date: 24 Jul 92 16:39:31 GMT
Article-I.D.: pslu1.1992Jul24.163931.23417
Reply-To: bill@dewey.edsci.wisc.edu
Organization: Physical Sciences Lab, UW-Madison


What is the annualized inflation rate for 1992 going to be, given  
what we know so far this year? Anybody want to make a stab at it?
Newsgroups: misc.invest
From: lando@cirrus.com (Dave Landis)
Subject: Universal,Whole and Term Life Insurance
Originator: lando@tango
Keywords: insurance
Organization: Cirrus Logic Inc.  Fremont, California
Distribution: usa
Date: Fri, 24 Jul 1992 15:19:10 GMT

Who has bought Universal Life Insurance?  Whole?  Term?

Some sources claim that Universal and Whole Life Insurance
are ripoffs.  I'd like to know the experiences of people
who read this news group.

regards....


-- 
============================================================================
Dave Landis (lando@cirrus.com)

"CALIFORNIA -- The No Budget, IOU State"
Newsgroups: misc.invest
From: pav@cs.rice.edu (Phuong Vu)
Subject: Wealth Builder *** FOR SALE ***
Organization: Rice University, Houston
Distribution: usa
Date: Wed, 22 Jul 1992 19:33:19 GMT

I have a copy of the program Wealth Builder (latest version)
for sale.  I want $45 for it.  Regular price is around $100.
If interested drop me a note.

Thanks,

Phuong Vu
pav@rice.edu
Organization: Sophomore, Math/Computer Science, Carnegie Mellon, Pittsburgh, PA
Newsgroups: misc.invest
Date: Tue, 28 Jul 1992 13:21:34 -0400 
From: Danny R Dalal <dd3e+@andrew.cmu.edu>
Subject: Re: Undervalued Utilities
	<1992Jul28.052436.13003@constellation.ecn.uoknor.edu>

Excerpts from netnews.misc.invest: 28-Jul-92 Re: Undervalued Utilities
Keith Brewster@alliant.b (3518)

> In article <seR6ntO00awCQquEZ1@andrew.cmu.edu> dd3e+@andrew.cmu.edu
> (Danny R Dalal) writes:
> >	I think that over the next year utilities will do very well (because of 
> >increased earnings).  I'd like to know if anyone follows the utilities
> >sector and/or has any comments about it.  Specifically, I would like to
> >load up on
> >some undervalued shares now and wait on it.  What do you think? What do
> >you recommend?
	<....>

> Electric: rate increases  (see above)
>          usage increase  more industrial use with recovery (if any)
>          fuel price decrease  not likely if there is a recovery, some
>                               chance of this if mid-east situation calms (ha)
>                               not sure what moves coal prices
>          repeal of clean air act    ha

> Gas:     rate increases   not likely at the consumer sales point, but I
>                           understand gas pipeline rates are being deregulated
>                           somewhat (of course that could cause price wars)
>          usage increase   some economy driven, but mostly weather.  Last
>                           winter was very warm, so a return to normalcy this
>                           winter could help those co's who have slimmed down
>                           as a result of low sales last year.  El Nino is
>                           waning, but still could be some lingering Mt Pinatubo
>                           effects (small cooling), and global warming????
>                           Also clean air act could lead to greater use of 
>                           natural gas a motor fuel.
>          raw materials increase  For those that supply fuel. The price of gas
>                           in the futures market has been rising since March
>                           at a time when it should have been falling.

>  they could be in for more tough times). Risk is the stock price has already
>  come up some from their low and another warm winter would really hurt.
--------------------------------------------
Thanks Keith,

	I think that we will have an unusually cold winter and hot summer
following.  I think that gas and electric utilities will see a gain in
earnings 
due to that (more usage).  I think I need to look into what companies are 
out there and which ones seem a little low for now.  I'll probably buy a few
now and wait till after the election (I think that the market will
generally fall then) and pick up some more.  this is a medium term
investment (2 years?).
But before I start I really need to do my homework.  What do you think
about that strategy?  Stupid, shortsighted, silly, brilliant?  Whatever,
I'd love
to hear it!

___Dan
From: zhangy@enel.ucalgary.ca (Yuejin Zhang)
Newsgroups: misc.invest
Subject: Re: Rising interest rate in Germany
Date: 24 Jul 92 03:15:29 GMT
Distribution: na
Organization: ECE Department, U. of Calgary, Calgary, Alberta, Canada

In article <BrtMJK.30@news.cso.uiuc.edu> hkk38381@uxa.cso.uiuc.edu (Arthur Kwok) writes:
>mho@pyramid.COM (Michael Ho) writes:
>
>>It seems that the interest rate will eventually come back down in Germany
>>and rest of Europe. Would this be a good time to get into some mutual funds
>>that specialize in European Bonds? Any good recommendation on such mutual
>>funds. 
>
>>Thanks,
>>mho@pyramid.com
>
>The worst thing is that as the DMK's interest rate goes down, so will
>the DMK. It is because the closing of the interest rate gap between
>U.S. and Germany (or Europe as a whole) will drive up U.S. dollar.
>I don't know whether your European bond's return, say U.K. Gilt, will
>overcome the loss in currency fluctuation.
>
>Art
>
>----------------I trade FX in the spot market------------------------

I think what you said is true. But, is there a good way to hedge DMK?
How do you expert do this?

Is there any way to short DMK, instead of buying long put on DMK future?
There seems quite a lot premium on such options.


-- 
    Yuejin Zhang	zhangy@enel.ucalgary.ca
Keep the ball rolling!	Phone: (403)220-5813 (Office)
Xref: sparky misc.invest:9935 sci.econ:6562
From: jmo@courant.princeton.edu (Mike Orszag)
Newsgroups: misc.invest,sci.econ
Subject: Re: Should we limit the shorts life time.
Date: 27 Jul 92 02:06:30 GMT
Organization: Princeton University
Originator: news@ernie.Princeton.EDU

Mr. Babak Sehari writes on short sales:

>> So, It seems that say B and C have left their car with a friend for safe
>> keeping, however, the friend has rented the car. Now, because of wear
>> and tear, high mileage on one hand, and the fact that the car is reduced
>> the need for cars in the market place on the other hand, the price of the
>> car is lower.

The argument is that there is moral hazard in loaning your stock to a broker
as the broker may loan out the stock again for a short sale. 

Mr. Jimmy Wales responds:
>> Suffice to say: it is relatively easy to see that _any_ restriction
>> on the flow of information to market (i.e. short sale restrictions) 
>> will involve some very serious consequences (costs) for market efficiency
>> relative to some information set.

>> It always amazes me that while your average clueless citizen knows
>> that he or she would be foolish to discuss the technical details of
>> (say) theoretical chemistry as if he knows it all.... that same citizen
>> has no qualms whatsoever about spouting forth on complex issues of
>> market efficiency.

The argument here is that short selling would place restrictions on the
flow of information to the market and that is bad for market efficiency.

I am not sure what the point of Mr. Babak Sehari's 10 investor model
and it is not obvious that what he has described is a model or an equilibrium.
I don't understand his second argument anyway as if the measure of the
shares deposited with the securities firm relative to the market is
close to zero I don't understand how those securities if loaned out
could have an appreciable effect on the market price. If Warren Buffett
loaned his entire portfolio to a securities firm, it would be another
story so I don't understand why Mr. Sehari's point is of the slightest
relevance.

On the other hand, I do not understand Mr. Wales criticism of Mr. Sehari
either. I do not think the issues of market efficiency are understood
at all and the mathematical models in finance are primitive and somewhat
questionable in terms of their economics. The Black-Scholes model is
indeed successful but only because of its concentration on very short
time horizons where a random walk approximation is appropriate and it
is important to remember that it is not an equilibrium model. Therefore,
I think there is need for a little more patience on matters as to whether
short selling is indeed beneficial. Some references on the topic of
the effect of short sales are: D.W. Diamond and R. Verrechia,
Constraints on Short Selling and Asset Price Adjustment to Private
Infomation (Journal of Financial Economics; June 1987 18:2,  277-311)
S. Figlewski, The Information Effects of Restrictions on Short
Sales: Some Empirical Evidence (Journal of Financial and Quantitative
Analysis; Nov. 1981. 16:4 463-476); J.J. Seneca, Short Interest: Bearish
or Bullish? Journal of Finance (March 1967: 22:67-70).

MIKE
Newsgroups: misc.invest
From: kandappan@asic.dec.com (K. Parthiban)
Subject: RE: Synopsys stock plunge
Organization: Digital Equipment Corporation
Date: 30 JUL 92 09:33:58    

Don't know if this is the reason, but...
	I heard on CNBC that "some" additional stock has been "freed up"
	from insiders; perhaps this surge of new stocks has pushed
	down the price.

	Can't think of any other reason Synopsys stock should go down;
	considering that they have a near monopoly of the synthesis market
	with Cadence, Genrad, et al having a lot of catching up to do;
	and the mega-bucks they charge for making a copy!!! ;^)

ciao 
K.Parthiban

/* Standard disclaimer about personal views and not company views blah blah */
From: cordova@Ra.MsState.Edu (Jose Cordova)
Newsgroups: misc.invest
Subject: TIAA-CREF ?
Date: 31 Jul 92 16:33:24 GMT
Reply-To: cordova@Ra.MsState.Edu
Distribution: usa
Organization: Mississippi State University

Does anyone on the net know how the TIAA-CREF plan work ?  Is it like a 401(k)
with different investment options ?

---
************************************************************************
Jose Cordova  - Department of Computer Science - Mississippi State Univ.
                     cordova@cs.msstate.edu
************************************************************************
From: prabhak@cs.umn.edu (Satya Prabhakar)
Newsgroups: misc.invest
Subject: Short Interest on NYSE and NASDAQ Way High
Date: 28 Jul 92 17:52:57 GMT
Organization: University of Minnesota, Minneapolis, CSci dept.

Recent WSJ reports that NASDAQ and NYSE short interest ratios
have hit an ALL TIME HIGH. Short interest has been a fairly
good indicator or key market turns - it's value is derived 
from the logic that the shorting has already been done and
these have to be covered sometime.

I think the stagnation for S&P is over. It will move
up slowly and surely from now on. What say you?

Satya Prahakar
Newsgroups: misc.invest
From: ssr@cypress.com (Bapcha/FPGA)
Subject: Re: Synopsis stock plunge
Organization: Cypress Semiconductor, San Jose, CA
Date: Thu, 30 Jul 1992 14:20:21 GMT

In article <1992Jul30.044552.3779@wdl.loral.com> JEN@ssvax1.ssd.loral.com (Jen Corliss) writes:
>Does anyone have any information about why Synopsis' stock price has 
>gone down recently, even though many software stocks have been going
>up?
>
>Thanks,
>
>	Jen
>

'cause it was highly overvalued to begin with.... an IPO offering that
starts at $18,  and shoots up to $28,  and then to $34 is kinda strange
to begin with.....
-- 
Bapcha - A very bad boy from Cypress Semiconductor
3901 N.  First Strasse
San Jose,  CA 95134, 408-943-2719
Newsgroups: misc.invest
From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Subject: Re: listing change
Organization: AT&T Bell Laboratories,  Columbus, Ohio
Distribution: usa
Date: Wed, 22 Jul 1992 17:35:41 GMT

In article <91618@bu.edu> merritt@macro.bu.edu (Sean Merritt) writes:
>	A NASDAQ stock I have been following just went
>	from being listed in the small cap issues to 
>	national market area. How does this happen?
>	Is this a good sign?
>
>	The stock is Transmedia Network TMNI
>
>	EPS=61 RS=92 p/e=28 52 w Hi=13 1/4 low =6 1/16
>
>	12 3/4 + 3/8 7/21/92.
>
>	WSJ article 4/23/91.

It may still be a small cap stock, but if it meets the NASDAQ
requirements for listing on their National Market System, then it
can apply to be listed there.  These req'ts include a minimum
capitalization figure, number of shares outstanding, and filing of
timely reports with NASDAQ.  I understand that most companies
delisted by NASDAQ are officially delisted for failing to file.
(The assumption is if they did file, they would be delisted anyway,
and would give away financial information they wantr to keep
private.)


I'm not sure I understand the figures you show above.

If P/E=28 and EPS=61 and Price= 12 3/4, then I'm not sure how to
combine those numbers.

Is P/E=28 considered high for that industry/market segment?

Sounds high to me, but I don't have enough information to evaluate.

There are really many questions to ask"

How has it performed over the last few years? What are the value
line ratings?  Have insiders been buying?  Been selling?  What's the
Debt ratio?

However, I personally ask a question that usually is the deal
breaker for me:  What are the names of the market makers?  If the
answer is less than 4 market makers, and if at least one of them
isn't a company I trust, the I don't care about the financials -- I
run the other way.

This is a very unscientific/un-economic method to use for OTC stocks,
but one that is part of my own criteria.

Your mileage may vary.  
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus
Newsgroups: misc.invest
From: dbk@pslu1.psl.wisc.edu (Don Katz)
Subject: Re: Guinness info
Organization: University of Wisconsin Physical Sciences Lab
Date: Thu, 23 Jul 92 18:31:48 GMT

In article <1992Jul23.153341.21900@iscnvx.lmsc.lockheed.com> shelly@iscnvx.lmsc.lockheed.com (Sheldon Kay) writes:
>A unsolicted broker called me with the deal of the year.      
>He wants to get new clients and show how great he is.
>
>Guinness on the London exchange selling around $10. (US) is expected
>to try and get on the NYSE. They are one of the worlds largest 
>liquor companies with their fingers in name stuff other than 
>Guinness beer. Last year sales were 7B and profits at 1B, showing a hefty
>increase from previous year. They want on to the NYSE because the London
>market is kind of dead.
>
>Any comments from the net???

Warren Buffett has made a substantial investment in Guiness. He likes
it a lot. 

Is he proposing that you buy it on the London Exchange before it lists
in the US?

Don


-- 
-----------------------------------------------------------------------------
Don Katz                                .         Physical
                                       .- / \ -.      Sciences
University of Wisconsin - Madison   ./'  /+-+\  `\.       Laboratory   E-MAIL
Newsgroups: misc.invest
From: rickp@oakhill.sps.mot.com (Richard Pekkala)
Subject: Estate Planning Book
Organization: Motorola Inc., Austin, Texas
Distribution: na
Date: Thu, 23 Jul 1992 02:32:50 GMT

Can I please have a few recommendations on your
favorite Estate planning book?  I'm most interested
in how to beat Uncle Sam, rather than how to
invest for the long term.  I live in TX.
-- 
Rick Pekkala                         rickp@oakhill.sps.mot.com
512-795-7350			     My Opinions Are Just That.
From: davec@iplmail.orl.mmc.com (Dave Crowder)
Newsgroups: misc.invest
Subject: Value Cost Averaging
Date: 23 Jul 92 21:11:59 GMT
Organization: Martin Marietta


	Could someone give me information on the ideas of value cost averaging.
I would be interested in any articles or books on the subject.  If it is in a 
FAQ list please let me know where I can obtain it.  Thanks in advance.


					Dave Crowder
From: hafn@quads.uchicago.edu (Tom Hafner)
Newsgroups: misc.invest
Subject: Help with Mail Order company Startup
Date: 24 Jul 92 20:43:17 GMT
Reply-To: hafn@midway.uchicago.edu
Distribution: misc.invest
Organization: University of Chicago Computing Organizations

Hello netters,

        Please pardon me if this post is in the wrong newsgroup (and perhaps
tell me where I ought better to direct my efforts).

        I'm thinking of opening a mail order company specializing in soccer
equipment.  Naturally, I need to know about various small catches and laws.
If you have any experience or knowledge of such things, please send me your
advice.  I am new to this whole scene; I could use any helpful hints.

        Thanks in advance. 


<<<>>><<<>>><<<>>><<<>>>><<<<>>><<<>>><<X>><<<>>><<<>>><<<>>><<<>>><<<>>><<<>>>
Thomas Bengal Hafner		 hafn@quads.uchicago.edu	     Chicago,IL
Newsgroups: misc.invest
From: hobbs@ntmtv.UUCP (Greg Hobbs)
Subject: Re: Northern Telecom Stocks 
Originator: hobbs@nmtvs305
Organization: Northern Telecom Incorporated
Distribution: na
Date: Wed, 22 Jul 1992 20:53:50 GMT

From article <1992Jul22.151443.22992@cs.UAlberta.CA>, by
hole@cs.UAlberta.CA (Steve Hole):

> In article <1992Jul21.173902.12400@bnr.ca> linb@bnr.ca writes:
>>Does anyone know why NT stock tumbled $3-4 today?
>>
>>Are there any people following this stock and can provide 
>>some comments?
> 
> Their 2Q earnings came out worse than expected.  Check the Wednesday
> Globe and Mail for details.

See the following two articles (reproduced without
permission) for more information:

Northern Telecom Ltd.'s net income for the second quarter
plummeted 32 percent as it absorbed a 7 percent drop in
revenue.  The plunge was the result of the sale of several
businesses by its British unit and a slowdown of equipment
orders in the United States and Europe.  Net income dropped
from $106.5 million a year ago to $72.3 million, while
per-share earnings skidded 33 percent.  In addition to a
drop in Telecom's stock, the company's revenue fell from
$2.1 billion to $1.95 billion.  Telecom Chairman Paul G.
Stern was pleased, however, that orders grew by 6 percent
to $2.14 billion in the quarter.  Stern noted that "Our
backlog is at an all-time high."  The second quarter report
spotlights the tumultuous changes at Telecom, which has
been striving to reduce its cost structure while expanding
into new markets via acquisitions and alliances with other
companies.  Wall Street Journal (07/22/92), P. A4 (Telecom
Today)


Investors dumped shares of BCE Inc. and subsidiary Northern
Telecom Ltd. yesterday, driving down both stocks, after
Northern posted sharply lower second-quarter earnings.
Another subsidiary, BCE Mobile Communications Inc., posted
a turnaround, while wholly owned Montreal Trustco Inc.
reported a huge loss. Investors shaved $4 1/4 or 9.4%  off
Northern's stock price, pushing it down to close at $41 1/8
on the Toronto Stock Exchange. BCE, which owns 53.1% of
Northern, lost $1 3/4 to close at $45 1/8. Citing the
sluggish world economy, Northern posted a 32% drop in
second-quarter earnings to US$72.3 million or US28 cents a
share from US$106.5 million (US42 cents) a year earlier.
The market had been expecting earnings of about US36 cents
a share.   The company said second-quarter revenues were
affected by the sale of non-strategic components of
Northern's British subsidiary, STC PLC. Also cited were
delays in customer spending due to the economy,
particularly in the key U.S. market, lower margins due to
product mix and a drop in sales of central office
switching.  The Financial Post (07/22/92) (Infomart)

Greg

-- 
Northern Telecom, Inc.		Voice:  (415) 940-2061 or ESN 646-2061
685A E. Middlefield Rd.		UUCP:     ames!ntmtv!hobbs
Mountain View, CA  94039	Internet: ntmtv!hobbs@ames.arc.nasa.gov
Newsgroups: misc.invest
From: hkk38381@uxa.cso.uiuc.edu (Arthur Kwok)
Subject: Re: Rising interest rate in Germany
Organization: University of Illinois at Urbana
Distribution: usa
Date: Thu, 23 Jul 1992 02:50:07 GMT

mho@pyramid.COM (Michael Ho) writes:

>It seems that the interest rate will eventually come back down in Germany
>and rest of Europe. Would this be a good time to get into some mutual funds
>that specialize in European Bonds? Any good recommendation on such mutual
>funds. 

>Thanks,
>mho@pyramid.com

The worst thing is that as the DMK's interest rate goes down, so will
the DMK. It is because the closing of the interest rate gap between
U.S. and Germany (or Europe as a whole) will drive up U.S. dollar.
I don't know whether your European bond's return, say U.K. Gilt, will
overcome the loss in currency fluctuation.

Art

----------------I trade FX in the spot market------------------------