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Joe Stocks

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Joe Stocks

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Friday, 01/18/2008 2:03:21 PM

Friday, January 18, 2008 2:03:21 PM

Post# of 77456
CFC - buy it at 5.10. The Feb 5's go for 60 cents. 9.8% return if taken out in 29 days. Exchange rate to BAC is .1822 shares of BAC. 1000 shares of CFC equals $5100. 1000 shares would compute to 182 sahres of BAC. BAC is at 35.60 per share. 182 X 35.60 = $6479. CFC is selling at a 21% discount to BAC at conversion.

I'm thinking covered call on CFC. The BAC deal spread should put a floor under CFC for at least the next 29 days till Feb expiry. I seriously doubt BAC would walk before then.

Thoughts.

Joe

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