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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY
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To: cleto who wrote (246)2/10/2000 8:48:00 AM
From: hugh thorne  Read Replies (1) of 856
 
All i care is that it is a US telco. These guys don't go around bad debting suppliers.

There is clearly a contract here, it has a minimum order that has been filled and assuming these guys can fulfil the supply side and not screw up on implementation then the clec has the right to extend to 435 units. the structure sounds like an aircraft deal where the purchaser essentially gets options on a number based on the fact that supplies are tight. I would suppose that these units are heavily oversold relative to the current available supplies - just seems to make sense if only a few suppliers are out there for all of America.

The unit pricing is consistent within the announcements, although i would love to find out what the unit pricing of TSTN's 1999 US$ 27 million of contracts.

I think the screw up in pricing was a currency translation issue. Based on the original announcement of 250 units the gross revenue is C$15 million. As the curreny wasn't identified in the release, someone in the press assumed it was US dollars and came up with C$ 20 million. They failed to understand that the disclosed currency is domestic unless otherwise stated. Of course the error did not hurt NHC's immediate goal of blowing off the 3million at 35 cents or so - can you blame them?

It is pretty safe to say, and as noted above, that this stock was just sailing with the winds yesterday. If they keep blowing the same way today, down she goes some more.

Major plus here, regardless of the current price the stock has yet to meet margin requirements and so we don't have to worry as much about forced jetisons of stock. Days like these it is best to shut off the RTQ lines!
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