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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Dakota Sullivan who wrote (49091)3/1/1998 3:35:00 PM
From: Sonny McWilliams  Read Replies (1) of 186894
 
Re: Won't this diminished supply pressure the stock up?

I guess at first glance you would think so, considering that you are buying Intel stock. But you could look at it this way: You are buying Intel at 20.875. Of course this is not the case. You are converting the warrant which in turn will be retired. I think the way I remember it, there is money or stock set aside to take care of the conversion. In the short run you would think that if all the warrants are not converted and actually are being sold, Intel will have to shell out money for the warrants that are not being converted. It is an interesting subject. You can look at it from all kinds of different views. It could actually put pressure on the stock on the down side since Intel's cash could get a bit diminished. But my view coming to pass is of course not carved in stone. I much rather see it your way but am not totally convinced if this will happen in this case. Maybe we will get some more views on this.

Sonny
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