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Technology Stocks : MCI Communications (MCIC)
MCIC 0.00700+6,900.7%3:27 PM EST

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To: shoe who wrote (1613)4/20/1998 10:57:00 PM
From: John Stinnett  Read Replies (1) of 1692
 
I would say that the reason people are willing to pay more for MCIC than the collar ($51) is that WCOM's 20 DMA is above $41 meaning that the same conversion factor applies to a higher share price of WCOM for your MCIC shares.

For example if WCOM's 20 DMA = $43 then the value of you MCIC stock is $43 x the collar's upper conversion factor 1.2ish which means your MCIC is worth $51-$52 after the merger. When MCIC goes over the $51 offer price IMO I would say this is bullish confidence that WCOM's 20 DMA will exceed $41.

Did this help or confuse matters?
John
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