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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (9917)6/3/1998 7:53:00 AM
From: Walter High  Read Replies (1) of 120523
 
Jenna:

I see that you have SBC on your watch list which closed at 40 1/16. I continue to be surprised that AIT trades only around 43-44 when it is being bought by SBC at an exchange rate of 1.316 SBC shares for every AIT share. That would make AIT worth about 52 1/2 right now.

From everything I have read, this deal is going to go through. There is no reduced competition since SBC and AIT have different service areas. The only reason I can see for the price differential is the amount of time it may take to close the deal. Meanwhile, if SBC rises (as I assume you think it will since it is on your list), that only makes AIT shares worth even more.

Anyone want to share thoughts on this? Am I missing the boat someway?

Walter High
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