CheckFree Holdings Corp. (CKFR), the next Dell, Intel? Message Board

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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?

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To: zuma_rk who wrote (12050)	11/16/1999 7:10:00 PM
From: Ron S	Read Replies (4) of 20297

Again, I think this convert is the wrong financing. They had to use Merrill again, as if Merrill didn't drive the stock down enough with the last proposed secondary. The underwriters spent the afternoon and probably the rest of the week getting institutions to sell the shares and then buy their converts instead with a conversion price much lower, since they are encouraging all the selling. At this rate, there wont be much institutional holding of the stock (hang in there, please, Mr. Gintel). Merrill got a lot of institutions to sell on the last go-around and almost none of those holders bought any back to replace; in that case, they were scared off by the stock's activity. It would be nice to think that this would bring on new coverage and recommendation for the shares, but this almost never happens as a result of a convertible bond financing. Lets just pray that Transpoint or Spectrum don't plan a further sabotage announcement to coincide with the next week's date when the converts go effective. Happy Thanksgiving!

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