Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (22572)	6/13/1999 12:49:00 AM
From: George Dawson	Respond to of 29386

"If this is true, did you see any incentive that Sun has to buy the shares before the end of the 3 year period?" Greg, To me the deal appears to be structured to provide incentives to accumulate the warrant rights as soon as possible. The main incentive from an investment perspective is the difference between the market price and the exercise price. The theoretical value of the warrants will increase as the market price per share increases and there is an add in for speculative appeal. In some cases volatility of the stock, well above the exercise range causes the warrant to be more valuable. These considerations apply for individual investors. On the business side, I noticed that other warrant deals were basically cash infusions into companies and in some cases the holder of the warrants did not exercise them. George