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Non-Tech : CORESTAFF (CSTF), now MMWW
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To: limit who wrote (209)12/1/1999 7:00:00 PM
From: Glenn Petersen   of 257
 
If you are going to hold on to your MMWW shares through the
distribution of the XPDR shares, you should probably be
prepared for MMWW to trade at a substantial short term
discount due to general market uncertainty and the
uncertainty associated with the IRS approval process.
Needless to say, that discount will close as the
distribution date approaches.

Actual post-IPO spin offs in the Internet sector are a
relatively new phenomenon and the only substantive post-IPO
Internet spin off that comes to mind is MALL's spin off of
UBID.

UBID completed its IPO on December 9, 1998. MALL announced
that they had gotten IRS approval in early May 1999, set the
record date for the distribution of the UBID shares for May
24, 1999 and did the actual distribution on June 8, 1999.
The MALL shareholders received .70488 shares of UBID for
each MALL share. After the distribution, MALL initially
traded at $8 per share. There was a significant uncertainty
until IRS approval was obtained. It may be that future
discounts will be less because investors will have the
example of UBID/MALL.

Closing Closing
Closing UBID Price Closing Price
Month Price Times Price MALL
End UBID .70488 MALL less $8 Discount(1)

12/98 106 5/8 75.16 31 3/4 23 3/4 68.40%
1/99 81 1/2 57.45 35 13/16 27 13/16 51.59
2/99 72 3/8 51.02 32 5/8 24 5/8 51.73
3/99 62 1/4 43.88 30 1/8 22 1/8 49.42
4/99 56 39.47 34 5/8 26 5/8 32.54
5/99 33 9/16 23.66 30 1/4 22 1/4 5.96

(1) 1 minus (Adjusted closing price of MALL divided by
value of UBID shares ultimately distributed to the MALL
shareholders; i.e, for 12/98, 1 minus 23.75/75.16)

I have not yet decided on my course of action yet. It all
depends on what happens with MMWW prior to the XPDR IPO.
I am, however, getting very enthusiastic about XPDR. Good
luck.

Regards,
Glenn
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