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Technology Stocks : Phoenix Technologies (PTEC)
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To: Fred Fahmy who wrote (3167)2/24/1999 8:24:00 AM
From: Mark Brophy  Read Replies (2) of 3624
 
The mergers and warrants add more shares.

Phoenix has purchased 150K shares/quarter to fund stock options. Award pays a larger portion of their compensation in options, so they'll add a disproportionate share of new purchases. Sand also has some options.

There was never a time before the Award merger when it made sense to fund the Intel warrants with repurchases because the stock price was always higher than the exercise price of the warrants. I think Phoenix has a liability for at least a million shares, but it may be even more because of the dilution caused by the mergers. However, no repurchases can be made until the price is at least 75% of the exercise price (14), so the stock price must reach 10 1/2.

If Phoenix doesn't draft a plan to fund the warrants, they're doing a disservice to their shareholders.
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