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Technology Stocks : WebNode.com - $4B Contract for Next Generation Internet

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To: BILLY B. who wrote (53)4/1/1999 7:26:00 PM
From: John Sladek  Read Replies (2) of 588
 
Billy,

Buy the nodes or buy the company? anybody have a suggestion for the better play between the two.

There is a limited number of nodes, but the company can make as many shares as it wants. This means that the price of the nodes will increase faster than the price of the shares, since the company is sure to be issuing more shares (for employee bonuses and that sort of thing).

Knowing this, you could set up a sort of hedge. Say go long the nodes and short the shares on the IPO.

By the way, when is the IPO?

Regards,
John Sladek

EDIT: Oh lookie #88...
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