S3 (A LONGER TERM PERSPECTIVE) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

0.0%

May 12 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jan A. Van Hummel who wrote (13934)	1/6/2000 9:50:00 AM
From: Bob Sutton	Read Replies (2) of 14577

Okay, now it makes sense. The exchange of USC shares for UMC shares is a disposition of the original asset and requires S3 to update its basis to reflect current value rather than cost, hence the bookkeeping entry for income. UMC's acquisition required S3 and the other minority USC investors to tender their shares upon completion, hence the confusing announcement yesterday that UMC had bought out S3 et al. Per the lockup, the UMC shares received in exchange are frozen until July earliest. SIII will hedge the eventual sale of those UMC shares against declines using treasury derivatives or options. Wonder if this move eliminates S3's participation in any further rise in UMC before July? Bob Sutton

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next