<<George, I have a question that has perhaps been answered before, but it didn't seem relevant till now.
If Ancor stock reaches $74.50, Then when Sun buys $67 of switches and pays $7.50 for a share of stock(warrant), they get 1 share of stock worth $74.50 plus product worth $67 for a total price paid of $74.50. If the stock price rises above $74.50, it would even be profitable for Sun to buy switches, throw them away, and keep the stock.
Why would an investor buy stock for, say, $80, when the higher the stock price goes, the more it costs the investor(s) in equity when they sell switches to Sun? >>
Walter--2 points: 1) With ANCR price well above $7, just assume SUNW owns the 1.5 mil shares now. They are just benefitting along withus other shareholders. And they have been very activist, helpful shareholders, be happy for them.
2) As soon as SUNW buys there quota to get the shares, every additinoal penny they spend we all share equally--all shareholders benfit equally. |
