HDTenEightyP/NetNews huggingface dataset:
From: etpeters@dal.mobil.com (E. T. Peterson(Eric))
Subject: Re: Closing Options Trading...
Organization: Mobil Exploration & Producing Technical Center(MEPTEC), Dallas. 
Distribution: usa
Date: Tue, 26 Jan 1993 15:25:51 GMT

In article <1993Jan25.213505.9172@head-cfa.harvard.edu>, ov@head-cfa.harvard.edu (Olaf Vancura) writes:
|> I have a couple of questions regarding options trading.  Here's an
|> example.  Let's say a buy an option to call XYZ corp. for $40; I own no
|> shares of XYZ.  At some later time, XYZ is $50 a share.  I wish to "close" 
|> the deal, i.e.  take my profits and bail out.  Now I understand that I 
|> could just exercise the option to buy at $40, and sell the shares at $50.  
|> But by doing this I lose some of the intrinsic value of the option, namely 
|> the time remaining before it expires.  So I would guess that I could sell
|> the option for something slightly more than $10.  Can this transfer be done,
|> leaving me free and clear?  Or is this merely writing a new (naked) option 
|> to call at $50?  What would the risks here be?  If this isn't the way to
|> cash out, how does one "close" the deal?!  Any info. much appreciated!
|> 
|> Olaf
|> ov@cfa257.harvard.edu

You can just sell the call for "slightly more than $10" and close out your
position.  You then are done: no more positions or risk.

If you exercise the call, you have a commission to buy the shares at 40 and
to sell the shares at 50, and you lose the bid-ask spread when you sell
at 50 (if market order).  Much better to just sell the option because you
get the remaining time value and have only one commission.

By the way Olaf, did you use to play chess in Santa Clara, CA in early 1980's?
I knew an Olaf Vancura there (not a common name!).

*********************************************************************
Eric Peterson                  The sooner you fall behind,
Research Geophysicist          the more time you'll have to catch up!
(214) 951-3251
etpeters@dal.mobil.com
*********************************************************************
Newsgroups: misc.invest
From: feldstei@silver.ucs.indiana.edu (Ronald F. Feldstein)
Subject: Re: Discount Broker
Keywords: broker
Organization: Indiana University
Distribution: usa
Date: Wed, 27 Jan 1993 01:56:34 GMT

I have had good luck with State Street Discount Brokers in Cleveland.
Phone 800-222-5520.  Their rates are a lot lower than Schwab's,
although I can't swear that they're the lowest in the country.
At least they're polite, efficient, and honest, and their rates are
among the lowest.

Ronald Feldstein
From: jiangky@vuse.vanderbilt.edu (Keyuan Jiang)
Newsgroups: misc.invest
Subject: 93 Fed Income Tax
Date: 28 Jan 1993 09:51:09 -0600
Organization: UTexas Mail-to-News Gateway
NNTP-Posting-Host: cs.utexas.edu


Could anyone post to this group info on changes in 93 Federal Income Tax?
Many thanks.

Keyuan
From: karld@engin.umich.edu (Karl Diederich )
Newsgroups: misc.invest
Subject: Re: Brown and Co (was: Olde Discount)
Date: 24 Jan 1993 23:46:13 GMT
Organization: University of Michigan Engineering, Ann Arbor
Distribution: usa
NNTP-Posting-Host: blue.engin.umich.edu

In nklein@Qstar.COM (Norman Klein) writes:
>This is the comission comparisons from the misc.invest FAQ.
>
>                                           $2000 trades
>                     Firm    400@ 5  200@ 10  100@ 20   50@ 40   25@ 80
>             K. Aufhauser  $  43.49 $  27.49 $  25.49 $  25.49 $  25.49
>        Pacific Brokerage  $  38.00 $  28.00 $  28.00 $  28.00 $  28.00
>         Jack White & Co.  $  45.00 $  39.00 $  36.00 $  34.50 $  33.75
>    Kennedy, Cabot, & Co.  $  38.00 $  38.00 $  38.00 $  23.00 $  23.00
>            Bidwell & Co.  $  41.25 $  31.25 $  27.25 $  25.75 $  23.50
>           Quick & Reilly  $  50.00 $  50.00 $  49.00 $  49.00 $  49.00
>            Olde Discount  $  35.00 $  50.00 $  40.00 $  40.00 $  40.00
>        Vanguard Discount  $  57.00 $  57.00 $  48.00 $  40.00 $  40.00
>       Fidelity Brokerage  $  63.50 $  63.50 $  54.00 $  54.00 $  54.00
>           Charles Schwab  $  64.00 $  64.00 $  55.00 $  55.00 $  55.00

I've been following this thread about various brokers.
Any comments about Brown and Company?
I was considering moving my account there.

Karl.
Newsgroups: misc.invest
From: lib@cbnews.cb.att.com (Lib)
Subject: Re: REQUEST: Rate of return in a mutual fund
Organization: AT&T
Distribution: na
Date: Mon, 25 Jan 1993 13:58:51 GMT

In article <1993Jan23.013434.29921@unocal.com> stgprao@st.unocal.COM (Richard Ottolini) writes:
>In article <KLUG.93Jan22084644@klug.Software.Mitel.COM> klug@Software.Mitel.COM (Peter Klug) writes:
>>
>>Could someone explain how to calculate the rate of return on a mutual
>>fund investment?
>
>The fund usally does for you in the yearly propsectus they send out.
>You can these free for any fund by calling them up.
>
>The return is the difference between the Net Average Value plus any distributions and
>and earlier NAV.  Divide this by the time period and scale it to a year long period.
>Many newspapers print this for all funds near the first of January.
  
As the original poster tried to point out it's not as simple as all that.
For example I put some money in Berger 100 this fall and it went up say 15%.
I put a roughly equal additional sum in Jan 1 or so and it's gone up say 3%.
If I add everything together it looks like I'm getting a 9% return, very
disappointing because in December I was getting a 15% return so even though
the fund went up since January 1st I feel poorer. Best to calciulate the
returns on each chunk seperately and annualize if you like.


Newsgroups: misc.invest
From: arora@nebula.austin.ibm.com (Rajiv Arora)
Subject: Re: Index Funds
Date: Tue, 26 Jan 1993 23:49:45 GMT
Distribution: na
Reply-To: arora@austin.ibm.com
Organization: IBM Advanced Workstations and Systems Division, Austin


I think index funds make a lot of sense to people like me who do not view
long-term investing as an activity where one "wins" by "beating" the market.
The bottom line is that there are *some* managed funds which will consistently
(i.e. over a 30 year period, say) beat the market index (S&P 500 or MidCap 400
or Russell 2000), but the trick is picking these funds today!

The fact remains, though, that there is an emotional element to investing
and--let's face it--index funds are about as exciting as a bowl of oatmeal. My
strategy is to have index funds as the core of my portfolio and then choose
some stock-picking funds for that adrenalin fix.

-- 
Rajiv Arora                            IBM Advanced Workstations & Systems (AWS)
arora@austin.ibm.com          	       Austin, TX

     Don't like my posting? Call 1-800-DEV-NULL for a full refund.
From: doug_d@sdd.hp.com (Doug Deprenger)
Newsgroups: misc.invest
Subject: Re: YOUR stock picks
Date: 27 Jan 1993 17:03:33 GMT
Organization: Hewlett-Packard, San Diego Division
Distribution: world
NNTP-Posting-Host: hpsdl126.sdd.hp.com

In article <1993Jan26.181956.2552@agora.com>, conway@agora.com (Mark Conway) writes:
|> In article <1993Jan25.140330.11217@cbnews.cb.att.com>  
|> lib@cbnews.cb.att.com (Lib) writes:
|> > In article <1993Jan22.163942.19832@spectrum.xerox.com>  >
|> > >Rio Hotel & Casino ( NASDAQ, RIO )
|> > >The Gap ( NTSE, GAP )
|> >    
|> > Body Shop 
|> > 
|> 
|> Broderbund Software (BROD-Nasdaq)	Recent Price: 47 1/4
|> ---------------------------------	--------------------
|> 
|> Educational software company has great products such as Where in ? Is  
|> Carmen SanDiego and interactive CD/ROM books such as Grandma and Me.  For  
|> the first time I heard an analyst mention this stock since it went public  
|> about a year ago (one of the technology analysts on Wall Street Week last  
|> Friday).  Their software alone is best-selling, but I think it's a good  
|> future play on the interactive television market.

  I noticed today in Investors Daily, that a suburb of Orlando, FL is
  getting the priviledge of interactive TV very soon.

  doug
From: doug.hewko@synapse.org (Doug Hewko) 
Newsgroups: misc.invest
Subject: Re: Superbowl and the Stock Market
Date: 25 Jan 93 08:59:00 GMT
Distribution: world
Organization: SYNAPSE BBS - GATINEAU, QUEBEC - 819-561-4321
Reply-To: doug.hewko@synapse.org (Doug Hewko) 

From: doug.hewko@synapse.org

DG.From: dgorbet@rainbow.UWaterloo.ca (D.P.H. Gorbet)
DG.In article <1jk2hiINN9uk@usenet.INS.CWRU.Edu> jxs18@po.CWRU.Edu (Jerry Sy)
  .writes:
>
> Has anybody heard about the relation of the superbowl and the stock
> market ?  I've heard about it sometime ago but don't remember much of
> the details.  It goes something like if the AFC wins stocks go up,
> (or is it the other way around) and said that year after year, it has
> been accurate!
>
  .It is mentioned in the book "A Random Walk Down Wall Street".  There is
  .also the women's skirt length - stock market relationship.

DG.The feeling in the book (and I agree) is that this is simply a correlation
  .and that there is no causal relationship at work here.  (i.e. don't put
  .your money on it.)

There was a study on this by Thomas M. Krueger and William F. Kennedy 
in the June 1990 edition of the Journal of Finance.  The article is on 
page 691, and is called "An Examination of the Super Bowl Stock Market 
Predictor".  Very basically, the Super Bowl Stock Market Predictor 
(SBSMP) was very accurate (91%) and someone following this strategy 
would have beaten the market over the 1967-1988 period.  (The authors 
only studied the 22 year period from 1967 to 1988.)  Of course, they 
also caution you that the SBSMP may not hold true in the future... :) 

               Doug
---
 . 1st 1.01 #574 . Divers do it deeper.
From: hamachi@adobe.com (Gordon Hamachi)
Newsgroups: misc.invest
Subject: Act Now to Fight the Deficit
Date: 25 Jan 93 19:38:02 GMT
Distribution: usa
Organization: Adobe Systems Incorporated

I've read "Bankruptcy 1995: The Coming Collapse of America and How to Stop It"  
by Harry Figgie, and it scares the hell out of me.  According to Figgie, the  
most likely results of inaction on the deficit are:

       A catastrophic market panic
	   Hyperinflation
	   20% of American jobs gone
	   Social Security payments cut or eliminated
	  
Figgie writes, "This is not an exaggeration.  In fact, I may be understating  
the degree of calamity that will befall most Americans.  It's going to be  
awful, and whatever you think I mean by awful, you can be sure that it's going  
to be worse."

I am convinced that the deficit is the single most important issue facing our  
country today.  I have written to my U.S. Senators, Congresswoman, the  
President, the Vice President, and prominent politicians such as Lloyd Bentsen,  
Leon Panetta, George Mitchell, Bob Dole, Tom Foley, and Newt Gingrich, urging  
them to take action, and demanding to know what they intend to do.

Now I urge you too to do the same, as soon as possible:

     The Hon. (name)
     House Office Building
     Washington, DC 20515

     The Hon. (name)
     Senate Office Building
     Washington, DC 20510
	 
	 or call the main switchboard at the Capitol: 202/224-3121

     The President
     The White House
     Washington, DC 20500
	 
	 or call the main switchboard at the White House: 202/456-1414

Write for information, or join:

     Citizens Against Government Waste
     1301 Connecticut Avenue, N.W.
     Suite 400
     Washington, DC 20036
	 1-800/BE-ANGRY or 202/467-5300

     National Taxpayers Union
     325 Pennsylvania Avenue, S.E.
     Washington, DC 20003
	 202/543-1300

     Citizens for a Sound Economy
     470 L'Enfant Plaza, S.W.
     Suite 7112
     Washington, DC 20024
	 202/488-8200

     Americans for Tax Reform
     1301 Connecticut Avenue, N.W.
     Suite 444
     Washington, DC 20036
	 202/785-0266

     United We Stand America
     PO Box 6
     Dallas TX 75221
	 1-800-925-4000
	 Annual membership is $15
	 
     The Concord Coalition
     5959 Triumph Street
     Commerce, CA   90040-1688
	 1-800-231-6800
	 Annual membership is $25
Newsgroups: misc.invest
From: jhsu@dcl-nxt54.cso.uiuc.edu (Jason Hsu)
Subject: Re: Any thoughts on Bristol-Myers?
Organization: University of Illinois at Urbana
Distribution: usa
Date: Wed, 20 Jan 1993 21:08:26 GMT

In article <29951@oasys.dt.navy.mil> wade@oasys.dt.navy.mil (Michael Wade)  
writes:
> 
> Our investment club is considering purchasing Bristol-Myers Squibb  
(BMY).
> However, this stock has recently been pummeled by the hysteria over
> Clinton's proposed health care reform.  The stock is about 64 now.

I believe BMY is overvalued (though not a short sale candidate).   
According to Value Line, the book value of BMY is only about $16/share (I  
forget the exact figure).  At $64, the price/book value ratio is a  
broiling-hot 4, compared with the S&P's historical average of 1.8.  I  
believe that a bear market, earnings growth that slows down, or earnings  
reports that fall a few pennies short of expectations will cause BMY to  
crash.  However, if BMY crashes and has a price/book ratio of 2/3 or less  
(bitter cold), the stock would be a screaming buy because of the earnings  
and dividend growth.
From: dow@everclear.berkeley.edu (Dow Research Account)
Newsgroups: misc.invest
Subject: Price Co. (OTC-PCLB) - Speculative Buy
Date: 23 Jan 1993 18:57:15 GMT
Organization: University of California, Berkeley
Distribution: world
NNTP-Posting-Host: everclear.berkeley.edu

				DOW RESEARCH GROUP

Price Co. (OTC-PCLB) - Speculative Buy

Business - Operates the Price Club cash and carry membership wholesale
	   outlets selling basic goods to businesses, selected retail
	   customers.  Has 94 outlets in U.S., 17 in Canada.

We recommend purchase of shares of Price Co. (PCLB) for aggressive accounts.
Recently there has been rumors circulating in the market about a possible
buyout of the company.

According to analysts at Montgomery Securities and Alex Brown & Sons, 
likely suitors are Wal-Mart Stores, Inc. (NYSE-WMT) and Kmart Corp. (NYSE-KM).
The rumored takeout price of Price Co. is about $70 a share - which wouldn't
be out of the question for the company.

We did a study comparing Price Co. to Costco Wholesale Corp. (OTC-COST)
and concluded that a $70 buyout price is extremely reasonable.  Here are 
the results of the study:

			Price Co. (PCLB)	Costco Wholesale Corp. (COST)
Stock price (1/21/93)	$ 37 1/2		$ 24 3/4
No. of warehouses	94			89
Market capitalization	$1.9B			$2.8B
Revenues (fiscal '92)	$7.3B			$6.5B
Net (fiscal '92)	$129M			$113M
P/E ratio		14.7			25.3
P/B ratio		2.2			3.5
Price/revenues ratio	0.25			0.42
Return on equity	16.2%			14.0%

From the study, we concluded that if Price Co. were to be given the same
valuation as Costco, it's stock price should be above $70 per share.  
And given the name recognition of Price Club, the company's stock should 
be given a higher valuation despite Costco's higher growth rates.

And lastly, we've concluded that for geographic reasons, it is not surprising
that Wal-Mart might be interested in buying Price Co.  A buyout of Price Co. 
might be attractive to Wal-Mart because it would position Wal-Mart in some 
major West Coast markets.  Price Co. has a dominant market position in 
California and some East Coast markets.  Meanwhile, Wal-Mart's 243 Sam's 
Wholesale Clubs operates mainly in the Southeast and Southwest.  In the
membership warehouse business, it isn't inordinately difficult to integrate
an acquisition.  Furthermore, with a market capitalization of almost $70
billion, it would not be very difficult for Wal-Mart to absorb the
acquisition of Price Co. with a stock swap.




DISCLAIMER:  There is no guarantee that the information on which this article
             was based is correct.  There is no guarantee that the information
             in this article is correct.  Also, the companies where we work
             have nothing whatsoever to do with this newsletter.
             Any opinion expressed here are statements of our judgement as of
             the date of issue and are subject to change without notice.
Newsgroups: misc.invest
From: scc26mf@centauri.unm.edu (Mark Fleharty)
Newsgroups: misc.invest
Subject: predictions
Date: 23 Jan 1993 02:09:45 GMT
Organization: University of New Mexico, Albuquerque
Distribution: world
NNTP-Posting-Host: pioneer.unm.edu

Newsgroups: misc.invest
Subject: predictions
Summary: 
Followup-To: 
Distribution: world
Organization: University of New Mexico, Albuquerque
Keywords: predictions

I have gotten close to 50 responses in the last 2 days for my predictions.
It appears that people want to here more of them.

I expect that Microsoft will still raise within the next week and a half.
But I expect that it will go down until at least Tuesday but withing the
next 2 weeks I expect it to raise by about 3-4% above its current value.

I expect AMD (advanced micro devices) to go up in price as well.  I am expecting
a 5%-7% increase in its price.

Keep in mind that this information most likely is not compleatly correct.  
In fact I am only expecting to be accurate on up and down movement 60% of the
time.  But I am giving the percentage increase or decrease based on how it has
done in the past.

I have recieved many requests for my program.  I can not (unfortunately) give
it out to anyone.  I am however working on version 2 which I will be able to
give out to the public.  I expect to have it out sometime during the summer.

I will also be posting predictions about every other day.  If you watch my
predictions long enough and think that they are good enough I encourage you
trade.  Also if you decide to make trades I would like to know because that
would just make me feel great knowing that someone is using something that
I wrote.

If you do decide to trade though.  All disclaimers apply.  I don't hold any 
responsibility for your actions.  You are at your own risk.

Have fun,  I hope they work like they have in the past.

Mark,
scc26mf@carina.unm.edu

P.S.  If you have any thing that you would like to ask me feel free to contact
me.  But keep in mind my response may take a long time. 

"Risk not thy whole wad!"
From: brad@optilink.COM (Brad Yearwood)
Newsgroups: misc.invest
Subject: Re: MLIS (was Micropolis (MILS)
Date: 24 Jan 93 22:16:26 GMT
Organization: Optilink Corporation, Petaluma, CA

In article <C1AE0s.4n7@athena.cs.uga.edu>, hal@pollux (Hal N. Brooks) writes:
# 
# Also, I have a vague recollection of a hard drive manufacturer
# in 1988 or so being accused of cooking the books.  As I recall,
# they were accused of shipping bricks (I swear, that's the way
# I remember it) to make it look like they were shipping more
# than they actually were.  Was that Micropolis?  I'm pretty sure
# it started with an M, and I remember confusing two such companies
# at the time.
# 

NOT!  It was Miniscribe which was accused of cooking the books and shipping
bricks.  Under the esteemed leadership of the aptly named Q.T. Wiles.

Brad Yearwood    brad@optilink.com    {uunet, pyramid}!optilink!brad
Petaluma, CA
Newsgroups: misc.invest
From: pearson_steven@tandem.com (Steven R. Pearson)
Subject: Commodities NOT zero-sum game (was: Re: Ken Roberts)
Organization: Tandem Computers Inc.,  Cupertino, CA
Date: Fri, 22 Jan 1993 02:02:31 GMT

In article <1993Jan20.194942.19033@mobil.com>, etpeters@dal.mobil.com (E. T. Peterson(Eric)) writes:
> 
> 95% of the TRADERS lose, not 95% of the MONEY is lost.  Commodities are a
> break even (zero-sum) game.  The 95% who lose are the small traders with
> little accounts and the 5% who win are the huge traders with millions of $,
> so it averages out to zero profit.

Well, to pick a nit, albeit I think an important one...
All so-called "zero-sum" markets (options, futures) are actually
what I would term "negative-sum" games.  For the participants,
that is, due to commissions.  For a talented broker, of course,
it's a risk-free road to riches...
-steve p.
Newsgroups: misc.invest
From: sjb@fc.hp.com (Stuart Bobb)
Subject: Barron's MFund Quarterly Review?
Date: Wed, 27 Jan 1993 15:30:32 GMT
Organization: Hewlett-Packard Fort Collins Site
X-Newsreader: TIN [version 1.1 PL8.2]


I've been looking for the fourth quarter's mutual fund review in Barron's.
Based on the time of month they published the third quarter's review, I would
have expected it by now.

Have I already missed it (if so, what issue?) or is it still coming?


Stuart Bobb
sjb@fc.hp.com
Newsgroups: misc.invest,misc.taxes
From: pearson_steven@tandem.com (Steven R. Pearson)
Subject: Re: Spousal IRA Question
Organization: Tandem Computers Inc.,  Cupertino, CA
Date: Fri, 22 Jan 1993 02:26:28 GMT

In article <1jepd3INNno5@usenet.INS.CWRU.Edu>, jxs18@po.CWRU.Edu (Jerry Sy) writes: 
>
> I am planning on opening an IRA account now and investing $2,000 for
> tax year 1992.
> 
> I received my W-2 form and item 6 (pension plan) has no check or any mark
> in it.

Technically, it's not what your W2 says, it's whether or not you or your spouse
were eligible, and your income was above certain limits.
 
> My wife has no income for the entire 1992.

That's sufficient, but not necessary.  Your wife can have any level of income.
The key is she must choose to be treated for IRA purposes as if she has no
earned income for the year (most importantly, she can't also make her own
contribution to an IRA).

> Question: Can I open up a spousal IRA for my wife in another mutual fund
> company or should it be the same as where I am going to put mine in ?

Entirely up to you (and, of course, your MF company, which must be willing
to accept your contribution).

> Another question.  Can the spousal IRA be closed and rolled into my IRA
> say, 2 years later  without any penalty ?

No, not after 100 years if your wife is still living.  IRAs and such are never
considered joint property.  You can receive her IRA (and keep it tax sheltered)
only upon her demise.  (You can also receive funds from the IRA as a result of
a court settlement, such as in a divorce case, but I don't think you can keep it as an
IRA...could be wrong there).  No, you can't merge the two accounts.

Regards, -steve p.  (opinions mine, no warranty)
From: andy@federation.gatech.edu (Andy Register)
Newsgroups: misc.invest
Subject: Re: Any thoughts on Novell?
Date: 21 Jan 93 16:17:08 GMT
Organization: CERL-EE, Georgia Institue of Technology

In article <om4oXB1w165w@gilligan.tsoft.net> bbs.dennis@gilligan.tsoft.net (Dennis Yelle) writes:

>short it yet.  Borland is a good short at 18, I think, but not Novel
                                  ***** ---^^

Please expand on this position.  I kind of think Borland has been 
beat down pretty good and was thinking of bottom fishing here.

2 main reasons.

C++  currently the fastest growing language.  Borland has the *best*
     windows / dos overall compiler and development environment.  It
     is a little expensive but not out of line with other products.

Quattro Pro  garnered quite a market share even though it was poorly
     marketed.  Borland has shifted its marketing and has cut the price.
     I expect them to move up in market share after this.  Technically
     the spreadsheet competes with Excel.  (Lotus is not even in the
     ballpark yet in the windows arena, IMHO)  I am curious to see  
     if Borlands object oriented development of QP allows them to
     'shift with market forces' better than the competition.

They do have some losers.  Object Vision is the most notable.

Toodles
Andy