Pure Atria Corp(PASW) and Rational(RATL) Merger Message Board

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Technology Stocks : Pure Atria Corp(PASW) and Rational(RATL) Merger

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To: Randy Ellingson who wrote (110)	4/26/1997 11:05:00 AM
From: david decamp	of 147

Baird, and Randy, I agree that the possibility is fascinating. But, did the RATL cash balance reflect the recent cash acquisition made right before the PASW announcement? I think that was for about $30M, if I recall. Even so, 200M is a lot of cash that could be used to acquire a large number of PASW shares and effectively "retire" them before the eventual stock swap and resulting dilution. I bought a chunk of PASW at 8 5/8, thinking that RATL had to fall below approximately 9 1/2 for me to lose money. I bought an equal chunk at 7 right before the Thursday close, with the intention of daytrading it, and got a partial fill on the sell for 7 7/16 right before the Friday close when the spread was 7 3/8 to 7 1/2. Not too shabby, as it was a net 7% turnaround after commissions. I think PASW still represents a huge potential return for an intermediate term investment, and the volume/liquidity/spread is very conducive to short-term trading on the big percentage swings. I will continue to day trade approximately half my holdings and hold the rest for ultimate conversion to RATL shares. I've rarely seen such a no brainer. Dave

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