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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: MONACO who wrote (5672)	6/30/1999 6:52:00 PM
From: the hube	Read Replies (3) \| Respond to of 10309

When a company acquires another company, they reflect their acquisition under one of two methods: purchase accounting or pooling of interests. Pooling of interests results in higher earnings on a going forward basis, since there are no goodwill charges to dilute earnings in future periods. It applies only to acquisitions where the consideration paid is substantially all stock of the acquiring company. There are very strict rules that must be met to qualify for pooling, including no stock buybacks during a lookback period (other than some permitted buybacks to offset the dilution of stock options). It looks to me like WIND is keeping their options open--either to be able to buy a target using their stock as collateral, or to be acquired in a friendly takeover by a company using its stock as currency (ORCL?, SUNW? AOL?). With the recent performance of their stock, I would doubt that they plan on using it as collateral in the near future, unless they see a substantial improvement. Personally, I'm glad to hear that they haven't bot back any stock. I'd hate to think that it would drop as much as it has with them buying it. I wouldn't be surprised to see the short sellers hit the stock tomorrow, since there is no chance that the company will be buying it back from them.