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Technology Stocks : Creative Computers(MALL)

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To: the dodger who wrote (1189)12/8/1998 3:51:00 PM
From: Clarksterh  Read Replies (1) of 1634
 
Dodger - A secondary offering of MALL...which could knock the snot out of the # of shares of UBID you would be entitled to.

You are correct that this is a possible reason for the cheap MALL, and that it would screw MALL share holders and arbitragers. One of the things that I would want to see before I started an arbitrage position would be the cash that MALL has on hand (e.g. what did they get from the IPO - if anything?). Another would be how many shares the directors and officers of Creative Computers hold. If they have a reasonable amount of cash and they personally hold a lot of shares it seems unlikely that they would dilute the stock.

Clark
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