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Technology Stocks : Alliance Semiconductor
ALSC 0.8100.0%Jul 10 5:00 PM EST

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To: Ken Muller who wrote (5555)7/25/1999 9:31:00 PM
From: Allen Furlan  Read Replies (2) of 9582
 
Ken, have you read how ALSC plans to take advantage of their UMC shares. I am building a position in DIMD because I believe the momentum players will perceive the DIMD/S3 combination to be a "hot" concept stock. By itself DIMD is a financial nightmare, but with S3 I perceive the play to be part arbitrage, part value and part momentum, a pretty nice combo.
S3 has stated that it expects that UMC shares will be eligible for trading. So the outstanding issues are when and how. Who has to approve, what kind of time line? How do you place 30% of a company on the line(ALSC plus S3) without seriously affecting the stock price. Are secondary offerings ever made on the Taiwan exchange or can we expect a very prolonged period of disposal? Didn't find anything in S3 package that addressed these kinds of issues. Do you have any insight on this?
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