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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (3776)	7/14/1999 11:11:00 PM
From: Exacctnt	Read Replies (1) \| Respond to of 54805

Mike, I looked at Rain's Form 10-K and you're right, there is no mention of warrant nor private placement. However, Dell describes their put selling as obligations as follows: "The Company has an active stock repurchase program, which is more fully described in Note 6 of Notes to Consolidated Financial Statements included in "Item 8 -- Financial Statements and Supplementary Data." One element of such program is the sale of put obligations. During fiscal year 1999, the Company sold 200,000 put obligations to a financial institution and received proceeds of $1.5 million in connection with such sale. The put obligations entitle each holder to sell to the Company, by physical delivery, cash delivery or net-share settlement, at the Company's option, one share of common stock at a specified price. The put obligations expire on January 7, 2000 and have an exercise price of $40 per share. The transaction was exempt from registration under Section 4(2) of the Securities Act of 1933, as amended. The transaction was privately negotiated and the purchaser of the put options was an accredited investor and qualified institutional buyer. No public offering or public solicitation was made by the Company in the placement of these securities." Microsoft describes their program as follows: " To enhance its stock repurchase program, the Company sells put warrants to independent third parties. These put warrants entitle the holders to sell shares of Microsoft common stock to the Company on certain dates at specified prices." Regards