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Biotech / Medical : Respironics
RESP 50.79+0.2%Jan 26 4:00 PM EST

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To: Andy H who wrote (46)11/13/1997 8:00:00 PM
From: Thean   of 103
 
Andy, thanks for the clarification. More questions... would you please cite the link where you get this info?

Am I right in saying that if the average RESP price is between $26 and $31, then each HDTC share will fetch exactly $24.

The only way HDTC will make out more is if average RESP price is >$31 since the 0.77 ratio is guaranteed.

At today's HDTC closing price of 19 11/16, the average RESP price is $21.4 (using 0.92 conversion ratio). This tells me that if I want invest in RESP and are willing to hold for 3 months, it's better to buy HDTC because I am getting a big discount at $21.4 vs the $26 11/16 closing price of RESP.

The discount is still amazing. Seems too good to be true. Please show me the math for further clarification. Thanks.
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