HDTenEightyP/NetNews huggingface dataset:
From: suhre@meltami.dsd.trw.com (Maurice E. Suhre)
Subject: Re: More Opetions.
Organization: TRW, INC.
Date: Thu, 19 Nov 1992 00:00:17 GMT

In article <Ef2LBQz0Bwx5E0vZU7@transarc.com> Jim_Laredo@transarc.com writes:

[Query and writing covered calls, and then purchasing the same number
of calls because the price has dropped substantially deleted.  mes]

>Is my stockbroker smart enough to go and call those options that I have
>and pay whoever call me with those shares? If no, how do I avoid the
>risk of being called and not being able to call those options that I have?

This one's easy.

When you buy the 10 contracts, instruct your broker that this is to
"close out your position".  Now you have no option positions in the
stock.  A broker should be watching these transactions, but one can't be
too careful.  When selling covered calls, be sure to say "opening a
position".  Just that simple.

-- 
Maurice Suhre
suhre@trwrb.dsd.trw.com
Newsgroups: misc.invest
From: irving@Happy-Man.com (Irving_Wolfe)
Subject: Re: about JWP 
Reply-To: Irving_Wolfe@Happy-Man.com
Organization: Happy Man Corp., Vashon Island, WA 98070-7399
Date: Tue, 17 Nov 1992 15:01:47 GMT

In <Bxu6vM.5BJ@utdallas.edu> weiqing@utdallas.edu (Weiqing Wu) writes:

> 2) It is a very very large company. ... It would't disappear 
> because a quarter loss or a year loss.` 

Solid Value rates companies for financial strength on a scale of 0 
to 9.  Thus, although this company's shares look extremely 
under-priced on conventional criteria, because its financial 
strength is zero, buying them must be regarded as an extreme 
crapshoot.  You might win big.  Or lose big.
-- 
 Irving_Wolfe@Happy-Man.com      Happy Man Corp.  206/463-9399 x101
 4410 SW Pt. Robinson Rd., Vashon Island, WA  98070-7399   fax x108
 We publish SOLID VALUE for the intelligent investor.   NextMail OK
Info free; sample $20.  Send POSTAL addrs: Solid-Value@Happy-Man.com
From: ajayshah@almaak.usc.edu (Ajay Shah)
Newsgroups: misc.invest
Subject: Re: Yields and Betas...huh?
Date: 18 Nov 1992 11:24:09 -0800
Organization: University of Southern California, Los Angeles, CA
NNTP-Posting-Host: almaak.usc.edu

RKSHUKLA@SUVM.SYR.EDU (Ravi Shukla) writes:

>So, truely and technically speaking, if the market return is 2% above its
>mean, the stock return would be 3% above its mean, if the stock beta is 1.5.
>How useful is it to know that? I don't know.

One shot at interpretation:

On a day the (S&P-type) market index goes up by 1%, a stock with beta
of 1.5 will go up by 1.5% + epsilon.  (Thus it won't go up by exactly
1.5%, but by something different).

The good thing is that the epsilon of different stocks is guaranteed
to be uncorrelated with each other.  Hence in a diversified portfolio,
you can expect all the epsilons (of different stocks) to cancel out.
Thus if you hold a diversified portfolio, the beta of a stock
characterises that stock's response to fluctuations in the market portfolio.

So in a diversified portfolio, the beta of stock X is a good summary
of it's risk properties w.r.t. the "systematic risk", which is
fluctuations in the market index.  A stock with high beta responds
strongly to variations in the market, and a stock with low beta is
relatively insensitive to variations in the market.

E.g. if you had a portfolio of beta 1.2, and decided to add a stock
with beta 1.5, then you know that you are slightly increasing the
riskiness (and average return) of your portfolio.  This conclusion is
reached by merely comparing two numbers (1.2 and 1.5).  That parsimony
of computation is the major contribution of the notion of "beta".
Conversely if you got cold feet about the variability of your beta=1.2
portfolio, you could augment it with a few companies with beta<1.

If you had wished to figure such conclusions without the notion of
beta, you would have had to deal with large covariance matrices and
nontrivial computations.

        -ans.
-- 
Ajay Shah, (213)749-8133, ajayshah@usc.edu
From: andy@federation.gatech.edu (Andy Register)
Newsgroups: misc.invest
Subject: Re: 10 Highest Yielding Dow Stocks
Date: 18 Nov 92 19:00:05 GMT
Distribution: usa
Organization: CERL-EE, Georgia Institue of Technology

Before I go to the library to look it up, does someone have a list of
the stocks making up the Dow Industrial Average and the modifier?

Toodles
Andy
From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Newsgroups: misc.invest
Subject: Re: warrants
Keywords: stock
Date: 19 Nov 92 00:13:20 GMT
Distribution: usa
Organization: AT&T Bell Laboratories,  Columbus, Ohio

In article <1992Nov18.211828.18906@pbhyf.PacBell.COM> jlortiz@pbhyf.PacBell.COM (John L. Ortiz) writes:
>Would someone explain warrants. I was told that I had been
>issued "x number of warrants". I should have followed up with
>so what? but I didn't...

There are many meanings to the word warrant.

The marshal can show up on your doorstep with a warrant for your
arrest.

Many army helicopter pilots are warrant officers, who have received
a warrant from the president of the US to serve in the Army of the
United States..

The State of California ran out of money earlier this year and
issued things that looked a lot like checks, but had no promise to
pay behind them. If I did that I could be arrested for writing a bad
check.  When the State of California did it, they called these
thingies "warrants" and got away with it.

But in your case, you have a financial instrument which was issued
with certain conditions.  SO check with the issuer on what those
conditions are.

For example, there may be an exchange privilege which lets you
exchange 1 warrant plus $25 in cash for 1 share of common stock in
the corporation, any time after some fixed date and before some
other designated date.

>Can I convert the warrants to shares?

Depends on the conditions of the warrant.  Ask.

>Are warrants worth anything?



They are pieces of paper which you actually have or which are
recorded on the books of the company for you.

How much are pieces of paper worth"?   Whatever a willing buyer and
seller agree on.

Is there a wide market for them?  Probably not, if they are closely
held private warrants.   But ask around;  some corporate officers
may, from time to time, offer to buy them.  Will it be a good deal?
I dunno.

>How do I negotiate/use them if this company is *not* public
>(not part of any stock exchanges). They expect to go public
>soon..(for the last 2 years!).

You will have to find a buyer -- advertise.

Once they go public it will be easier, maybe, to sell them.
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus
Newsgroups: misc.invest
From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Subject: Re: Warrents
Organization: AT&T Bell Laboratories,  Columbus, Ohio
Distribution: usa
Date: Mon, 16 Nov 1992 16:23:39 GMT

In article <1992Nov16.094003.11358@lmpsbbs.comm.mot.com> markr@mcil.comm.mot.com writes:
>In article <BxqnDo.AnF@cs.uiuc.edu> watanabe@cs.uiuc.edu (Larry Watanabe) writes:
>>ask@cbnews.cb.att.com (Arthur S. Kamlet) writes:
>>
>>>I also almost never buy options.  (I do write them though.)
>>
>>I have heard that there is money to be made off warrants ..
>>writing them, that is. How do you write warrants?
>>
>>>My general recommendation, is that buying a warrant or option 
>>>is a lot closer to gambling than investing.
>>
>>Peter Lynch says that both he and Warren Buffet feel that
>>options and futures trading should be banned. So you're
>>in good company.
>
>In other words, they want to be able to disallow people to write
>contracts between themselves ?  That doesn't sound like good
>company to me. (no matter how much I admire PL and WB, I think
>they are wrong on this issue)

I won't argue either side, but I think your statement of the case is
simplified.  It is not merely a matter of whether people should or
should not be allowed to write contracts.

Rather, the contracts themselves have become a negotiable
commodity.


(And if we then turn around and write contracts on contracts, such
as options on futures contracts, we now have a negotiable commodity
twice removed.)
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus
Newsgroups: misc.invest
From: bohnert@leland.Stanford.EDU (matthew bohnert)
Subject: Query on Failure Analysis Associates, Inc.
Organization: DSG, Stanford University, CA 94305, USA
Distribution: usa
Date: Mon, 23 Nov 92 04:51:33 GMT

Does anybody have opinions on the above company?  It trades on the NASDAQ
at around 7 currently, which is pretty close to book.  Their earnings
were whacked the last couple of quarters but the stock is still selling
at around 12 times trailing EPS.  IMHO, a fairly solid company who leads
its field and is selling very cheaply right now.... but criticism is, as 
always, appreciated.

Matt Bohnert



Newsgroups: misc.invest
From: rcollins@encore.com (Roger Collins)
Subject: Re: Warrents
Organization: Encore Computer Corporation
Distribution: usa
Date: Mon, 16 Nov 1992 16:47:51 GMT

Someone said options and warrents were more like gambing.

watanabe@cs.uiuc.edu (Larry Watanabe) writes:
>Peter Lynch says that both he and Warren Buffet feel that
>options and futures trading should be banned. So you're
>in good company.

Gosh, I liked Peter's book, I didn't know he was also a moral
authoritarian.  What's wrong with gambling?
From: dlaird@terapin.com (Delbert Laird)
Newsgroups: misc.invest
Subject: Speculation Methods
Date: 20 Nov 92 13:38:38 PST
Organization: BBS

Does anyone believe that there are any worthwhile speculative-stock
investment methods?

I personally look for Biotech and Medical Industry stocks with a de-
preciating (ed) value compared to last year earnings and evaluate it
based on it's objectives and any current FDA-affairs (Biotech).

So far, out of around 23 stocks, I managed a 36% return with only one 
stock collapsing and filing bankruptcy.....(For my Speculation Portfolio,
I only select stocks with purchase prices (at the time of initial sale),
under $6.00.

I look at lows vs. highs for the last 52 weeks and then select the ones
that currently have the potential (remember- speculative) to double in
price over the next year...possibly to once again reach it's high.

Note:  The 36% return is based on stock purchases from Oct. 91- Sept. 92.

dlaird@terapin.com
Newsgroups: misc.invest
From: flake@flakes.ossi.com (Christopher Flake)
Subject: Beginner questions -- where can we go for help?
Reply-To: flake@flakes.ossi.com
Organization: Open System Solutions, Inc.
Date: Wed, 18 Nov 1992 21:06:52 GMT

Hello,

It seems my wife and I have money *sitting* in our checking account.

Neither of us have MBA's and neither of us have the time or desire to
study-up on all the ins and outs of investing.

We think we want something like an Investment Advisory Service --
hopefully one which charges an hourly-based rather than percentage
based fee.  Is there such a thing?  And are there any recommendations
for one in the southern SF Bay Area?

What advise do you have for beginner investors?

Thanks,


Chris


Reply to: flake@ossi.com -- I will summarize if I get sufficient response.  I had
hoped to find an answer in the FAQ (in this case, First Asked Questions).



Newsgroups: misc.invest
From: jas@rdii.com (Jim Smith)
Subject: Investing after retirement: How do I maximize income?
Followup-To: misc.invest
Keywords: retirement, income
Organization: Racal-Dana Instruments, Inc.
Distribution: USA
Date: Wed, 18 Nov 1992 23:01:48 GMT

My mother-in-law (a very nice lady) has decided at age 70 that she
has had enough and is selling her house in New Jersey and moving
to a retirement trailer park in Las Vegas.  I estimate that after
selling the house (taking her one time exemption from the capital
gains tax) and purchasing a trailer in vegas, she will have
approximately $40-$45K left to invest.  She has no other savings
whatsoever, so must live on her social security and the income from
the money she invests.

I have a couple of questions in regards to general investment strategy.
First, how can she maximize her income and still keep up with inflation 
without getting into trouble.  Second, what are the tax implications 
(for both her and us) if we supplement her income to help her get by.

She has been getting all sorts of stuff in the mail (as you might well
imagine) from investment companies.  One of the ads she sent me is for
the Franklin U.S. Government Securities Fund.  Does anybody know about
this fund and whether or not it would be a good place to invest her money?

Please keep in mind that I know next to nothing about investing, (other
than you need to start a lot earlier than my mother-in-law did) so the
simpler the explanations the better.  Thanks for your help.

Jim Smith
-- 
jas@rdii.com                  | "If you put tomfoolery into a computer, nothing
Opinions (tm) property of     | comes out but tomfoolery. But ... having passed
James A. Smith, Sr. Engineer  | through a very expensive machine, ... no one
Racal-Dana Instruments Inc.   | dares criticize it."  Pierre Gallois
From: taw4@ns1.cc.lehigh.edu (TODD A WATKINS)
Newsgroups: misc.invest
Subject: Re: Opinions on Reich?
Date: 24 Nov 92 00:01:15 GMT
Organization: Lehigh University

In article <1992Nov21.015954.1536@cs.sfu.ca>, mcdonald@cs.sfu.ca (Ken Mcdonald)
writes:
>
>Can anyone in netland offer a thumbnail (or better) synopsis of Reich,
>Clinton's Man From Harvard, and the ideas this fellow is pushing?  I
>like Clinton, but looking at Reich makes me very uneasy.  (Visual looking--
>on nothing but first impressions, I neither like nor trust the man.  This
>isn't a very good way of evaluating people, but at the moment, it's all
>I've got.)  Feedback from people who know and understand Reich's work in
>some detail is especially desired.  I'll track down and read his books
>sometime, but probably not soon.  Is his research sound?  Does he use
>reasonable assumptions?  (Many economists do not.)  Can he justify his
>conclusions by historical validation?  (Well, maybe "justify" isn't
>the right word here.  You know what I mean.)  Etc. etc.
>

I've just spent the last 8 years at the Kennedy School at Harvard, where Reich
teaches. I recently left, but I had the opportunity to get to know him and his w
ork.

I would not call his work true scholarly "research" but rather "synthesis" and
"popularization," which he does extraordinarily well.
This lack of contributions to academic research is
reflected in the fact that he is not a tenured professor at the Kennedy
School, but rather gets continuing appointments as a Lecturer.

I would describe his work as Liberal, but pragmatically so.  I'd also not call
him an economist.  His background is in law.

Anyway, the Clinton economic plan to date is vintage Reich
-- investment in infrastructure and
human assets, education and training.  These are assets, in Reich's view
that government can invest in for long term growth without the fear that the
assets will pick up and move offshore.  Roads, bridges, pipelines, and people
do not tend to be very mobile -- whereas other forms of investment, even
capital equipment, can pick up and move, and increasingly do, in Reich's view,
in the global economy.  He's recently made famous the phrase "Who is Us?"
to indicate the difficulty we would have identifying a truly "U.S." company,
when stockholders are globally distributed,
multinational companies employ people worldwide,
cars are made with parts from all over the globe.  The only assets the
government and taxpayers can be assured will be truly American are its people
and infrastructure.  For an American it matters little, for Reich, if he is
employed by Honda or IBM, because both firms will only invest in the US
if there are well trained employees to run the machines, and manage the
plants, and investment by one is as good as investment by the other.

I'm grossly simplifying here, but that's the nutshell.

As for his personality and trustworthiness,
he's a delightful and honest man, as far as I can
tell, and is probably the single most popular teacher at the Kennedy School.
-- 
Todd A. Watkins          Lehigh University/College of Business & Economics
taw4@lehigh.edu          Rauch Business Center #37/Bethlehem, PA  18015
Newsgroups: misc.invest
Subject: Ruble futures market info?
From: Yaakov Kayman <YZKCU@CUNYVM.BITNET>
Date: Monday, 16 Nov 1992 14:28:36 EST
Organization: City University of New York/ University Computer Center

Now that the Soviet Union's gone and the Russian economy is opening up
(it hopes) to foreign investors, where might one get some information
about a rubles futures market?

Does one exist? How does one find a broker?

Any other information would be appreciated. E-mail or post is fine.

Yaakov K. (yzkcu@cunyvm.cuny.edu on the Internet)
Newsgroups: misc.invest
From: etpeters@dal.mobil.com (E. T. Peterson(Eric))
Subject: Re: Writing options
Organization: Mobil Exploration & Producing Technical Center(MEPTEC), Dallas. 
Distribution: usa
Date: Fri, 20 Nov 1992 14:46:50 GMT

In article <1992Nov18.234828.6117@cbnews.cb.att.com>, ask@cbnews.cb.att.com (Arthur S. Kamlet) writes:
|> 
|> Well, you cannot put in a buy order at 15 when the stock is below 15
|> because your broker will be obligated to buy at the best price at or
|> below 15.
|> 
|> However, what you suggest is an order to buy at the first tick
|> (perhaps the first uptick) after it hits the 15 mark.   I don't
|> know, is there such an order?  



Yes, there is such an order.  It is called a "stop" order. For example,
when the stock is at 13, you place an order to "Buy at 15 stop". When the
stock first trades at 15 or higher, your order becomes an order to buy at the market. You may end up buying at some price slightly different from 15, because
your order becomes a market order. There is no guarantee you will get the stock
for 15. For example, if it closes one day at 14, and opens the next day at 16,
you would have to pay 16!

Stop orders are definitly available on the NYSE and AMEX exchanges (I have used them before). I'm not sure about the NASDAQ.


Eric Peterson
Newsgroups: misc.invest
From: pearson_steven@tandem.com (Steven R. Pearson)
Subject: Re: >>>>> Where is the best place to stick it?
Organization: Tandem Computers Inc.,  Cupertino, CA
Date: Wed, 18 Nov 1992 18:58:42 GMT

Ah, such a problem to have...

> >    I am about to receive a gift of $100k from a relative in a couple weeks.
> > I would like to invest it somewhere for a couple years until I get out
> > of school. Do you guys recommend stocks, bonds, funds, foreign currency, or
> > mixture? I'm looking for something without much risk with a high return.
> > Am I being feasible in anticipating a 10% return a year.

Someone offers:

> 10% return is awfully good for today's rates.  You will need to 
> get pretty risk, like an aggressive mutual fund or a junk bond.  For something
> reasonably safe, you should expect 4-7%. Usually, you should try to develop
> a portfolio. Some in risky, much in safe, some in long term, much in short
> term. Personally, I would use the following blend...
> 
> 	50% in a CD in a bank
> 	20% in an aggressive stock fund.
>  	20% in an equity stock/bond fund
> 	10% in an checking or money market.
> 
> The key to wealth is to try to accumulate it.... not risk losing it. 

My thoughts:

Without knowing more about your financial situation and your intended use of
the windfall are, any particular asset allocation recommendation, including
the conservative one above, is a bit premature.

Of course, it might be wise to pay off any expensive debt you have and set aside
some liquid reserve in case of emergency, if these things are not already taken
care of.  After that, how you invest the rest should be goal-driven.  If you want
a good intro to several "professional's" opinions regarding how to invest for
different kinds of goals, hie thee to the local public library.  In the long run, you
are ultimately responsible for your own results (and blaming them on inadequate
net.advice will only buy you so much comfort).  Arm yourself with knowledge.

-steve p.
Newsgroups: misc.invest
From: tcashin@zeus.ladc.bull.com ()
Subject: Re: Re:Zenith
Date: Wed, 18 Nov 1992 22:22:53 GMT
Reply-To: Tim_Cashin@l66a.ladc.bull.com
Organization: Bull HN Information Systems Inc. Los Angeles Development Center

In article <1992Nov17.014217.4416@wam.umd.edu>, cali@wam.umd.edu (Cali
Chen) writes:
|>	Someone asked about ZE.  I own it and am going to buy more.
|>I am betting on their technology.  Too bad their management is stupid.
|>
|>They delayed responding to price cuts by competitors and lost market
|>share.  Their FTM monitors were delayed during the second quarter
|>because of upgrades and start-up conditions, but their negotiating with
|>several companies for the dev. of customized FTM monitors.
|>

   This stuff is built by Zenith Data Systems which is now owned by
Groupe Bull, a
    French mainframe & unix builder. Bull bought ZDS from Zenith
Electronics a couple of
    years ago. ZE wanted to concentrate on their core business and
research in HDTV.

|>ZE developed stero sound but they let competitors profit from it
|>without collecting royalties.  They learned their lesson and now collect
|>royalty income for their tuner technology.  They also expect
|>benefit from patented HDTV tech no matter whose system is adopted.
|>
|>Cali
|>

Tim               
Newsgroups: misc.invest
From: keith@iscp.Bellcore.COM (Keith Hawkins)
Subject: Re: TELEBRAS
Reply-To: keith@iscp.Bellcore.COM (Keith Hawkins)
Organization: Bell Communications Research (Bellcore)
Date: Tue, 17 Nov 92 20:45:31 GMT

In article <1992Nov10.180221.13784@oracle.us.oracle.com>,
kbalasub@sparcle.oracle.com (Kris Balasubramanian) writes:
|> 
|> Hi,
|> 	This is a telephone company in Brazil. 


Whew!!  Good thing you said what the TELEBRAS company does.  For a
second
there I thought they manufactured distributed undergarments! :-)
Newsgroups: misc.invest
From: sbrenner@cbnewsb.cb.att.com (scott.d.brenner)
Newsgroups: misc.invest
Subject: Questions About Mutual Fund Capital Gains and Calculating Return
Date: 17 Nov 92 20:48:40 GMT
Distribution: usa
Organization: AT&T

I was just thinking about an algorithm to compute the return on my
mutual funds.  I realized that 'return' is made up of both the increase
(hopefully!) in share price and the capital gains distribution(s) 
during the year.  For accuracy, I decided to track each group of shares
separately (a group being a number of shares bought at the same time).
Since I dollar-cost-average, investing a fixed dollar amount into the 
fund on a monthly basis, each month's "group" of shares will most likely
have a different cumulative return.  I can weight-average these together
on an annual basis to get a measurement of how the fund is doing.

When I thought about the cap gains distribution, though, I confused
myself (which isn't hard!).  So here's my question:

Is is true (I think it is) that the dollar amount of a cap gains
distribution is based on the total number of shares held at the time of
the distribution?  An example:  I open an account and buy 10 shares of 
Fund X in January, my neighbor opens an account and buys 10 shares of 
Fund X in December, and the fund distributes its cap gains 12/31.  We'll
both get cap gains of the same value, right?  Is it like dividends on a
stock, where it doesn't matter how long you've held the stock as long as
you're an "owner of record" on some specified date?  How does this 
affect the calculation of return?

While I've got your ear (well, actually your eyes!), am I making this
"calculation of return" thing more difficult than it needs to be?  I 
want to be able to compute it myself and not rely on magazines or the
Fund itself telling me how well the fund did.  But since I'm buying 
different numbers of shares at different prices at different times of 
the year, there doesn't seem to be a simple way to calculate my return.

An answer to my questions and suggestions on a better (and easier) way
to calculate return will be appreciated.

a T d H v A a N n K c S e

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Scott D. Brenner
AT&T Consumer Communications Services
Basking Ridge, NJ
sbrenner@attmail.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Newsgroups: misc.invest