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Technology Stocks : Lycos

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To: eDollar.com who wrote (2403)5/17/2000 9:12:00 PM
From: StormRider  Read Replies (1) of 2439
 
Here's the bottom line:

(From Yahoo boards)
FACTS ON DEAL HERE, NOT SHORT's LIES...
by: kronem (M/Boston, Mass) 5/17/00 8:25 pm
Msg: 51037 of 51067
The multiple varies based on the price of TRRA, but as long as it is within the 'collar' LCOS shareholders will get a multiple of TRRA that equals $97. Based on todays closing price of TRRA, LCOS is still valued at $97. If TRRA goes to $100 then LCOS would be worth the value of each share of TRRA X the lower multiple of 1.433. If TRRA goes to $30 then LCOS is worth the value of each share of TRRA X the higher multiple of 2.150.

Examples:

TRRA price = $30 * 2.150 = $64.50 for LCOS
TRRA price = $40 * 2.150 = $86 for LCOS
TRRA price = $50 = $97.55 for LCOS
TRRA price = $60 = $97.55 for LCOS
TRRA price = $70 * 1.433 = $100.31 for LCOS
TRRA price = $80 * 1.433 = $114.64 for LCOS

Anything between $45.37 and $68, LCOS gets $97.55 of TRRA. Above that and we get more. Below that and we get less.

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by: liv_in_lavi_da_loca 5/17/00 9:00 pm
Msg: 51060 of 51062
don't forget that Telefonica has made a
commitment to buy as much as 35 mill shares of trra at $56. That's for the upcoming secondary. That's more than current float of 23 mill. There is some real serious money wants to see this deal go through. Much more serious than players like Davis or Wetherell. Trra shares will be supported at least until the deal is done. It won't take a lot of cash.

Besides, today's great earnings will make LCOS this much more attractive to TRRA holders and buyers.

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by: kronem (M/Boston, Mass) 5/17/00 8:48 pm
Msg: 51048 of 51060
Issued April 11th:

Credit Suisse First Boston Technology Group analysts Will Landers and Shane Leonard today initiated coverage on Terra Networks (Nasdaq: TRRA - news) witha Buy rating and a price target of $100 per ADR (or Euro 100 per share).
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