(COMTEX) B: Merrill Lynch Introduces Broadband HOLDRS; 5.9 Million Shares Of BDH Begin
Trading
* CIEN AT BOTTOM OF PAGE*
NEW YORK, Apr 6, 2000 (BUSINESS WIRE) --
Merrill Lynch today
announced that Broadband HOLDRS (Amex: BDH) are expected to begin
trading this morning with an initial market capitalization of
approximately $550 million.
Broadband HOLDRS represent investors' undivided beneficial
ownership interest in the common stock of 20 companies that, among
other things, develop, manufacture and market products and services,
which facilitate the transmission of data, video and voice more
quickly and efficiently than traditional telephone line
communications.
"Broadband stocks offer significant investment potential as
bandwidth technology continues to develop over the next several years
but trying to identify which handful of stocks will carry the group is
extremely difficult," said Steve Bodurtha, head of Customized
Investments at Merrill Lynch. "However, by investing in broadband
companies through HOLDRS, investors can unlock the power of
diversification through an extremely efficient investment vehicle."
The annual expense for owning HOLDRS is 8 cents per share, or
generally less than 0.10%. This expense is waived to the extent it is
not covered by dividends on the underlying stocks.
Investors may cancel their HOLDRS and take possession of the
underlying stocks for a fee of no more than 10 cents per HOLDR. This
process is not a taxable event and will provide investors with
investing and trading flexibility. HOLDRS also enable investors to
implement a true buy and hold investment strategy.
In July 1998, Merrill Lynch launched its first HOLDRS product,
Telebras HOLDRS (NYSE: "TBH"), with an initial market capitalization
of about $4.68 billion. Telebras HOLDRS represent investors' interests
in 12 separate American Depositary Receipts. Since its inception, TBH
has traded on average almost 1.7 million shares per day.
In addition to Broadband HOLDRS and Telebras HOLDRS, there are a
total of seven other HOLDRS: Telecom HOLDRS (TTH), Pharmaceutical
HOLDRS (PPH), B2B Internet HOLDRS (BHH), Internet Infrastructure
HOLDRS (IIH), Internet Architecture HOLDRS (IAH), Biotech HOLDRS (BBH)
and Internet HOLDRS (HHH).
An investor may obtain HOLDRS by purchasing them in the secondary
market - just like any other stock - or by depositing with the HOLDRS
Trustee the required share amounts of the 20 underlying stocks and
paying an issuance fee of up to $0.10 per HOLDR to the Trustee. HOLDRS
can only be traded, issued and cancelled in round lots of 100 HOLDRS.
The specific share amounts underlying each round lot of 100
Broadband HOLDRS are set forth in the chart below. These share amounts
should not vary except for changes due to corporate events such as
stock splits or reverse splits on the underlying securities or
reconstitution events.
Ticker Name of Company Shares per HOLDRS
LU LUCENT TECHNOLOGIES INC 29
NT NORTEL NETWORKS CORP 14
MOT MOTOROLA INC 6
QCOM QUALCOMM INC 8
JDSU JDS UNIPHASE CORP 8
BRCM BROADCOM CORP -CL A 2
GLW CORNING INC 3
SCMR SYCAMORE NETWORKS INC 3
AMCC APPLIED MICRO CIRCUITS CORP 1
TLAB TELLABS INC 4
TERN TERAYON COMMUN SYSTEMS INC 1
PMCS PMC-SIERRA INC 1
CMVT COMVERSE TECHNOLOGY INC 2
SDLI SDL INC 1
CNXT CONEXANT SYSTEMS INC 2
NXTV NEXT LEVEL COMM INC 1
RFMD RF MICRO DEVICES INC 1
SFA SCIENTIFIC-ATLANTA INC 2
CIEN CIENA CORP 1
CMTN COPPER MTN NETWORKS INC 1 *T
The Merrill Lynch U.S. Private Client Group serves nearly 6 million households,
small-to-mid-sized businesses and regional financial institutions using a
planning-based approach to portfolio management. Among the many services
available to Merrill Lynch clients are self-directed and full-service brokerage,
personal credit, insurance, home financing and trust services, as well as
retirement and group-employee-benefit services and business financing.
Merrill Lynch clients are served by more than 14,200 Financial Consultants in
nearly 800 branch offices nationwide. As of the end of 1999, investors worldwide
had entrusted Merrill Lynch with more than $1.7 trillion in client assets.
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
-0-
CONTACT: River Communications
Justin Meise
914/591-5599
jmeise@riverinc.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: BANKING
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
*** end of story *** |
