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To: Tom D who wrote (67892)	7/15/1999 6:02:00 PM
From: Tradegod	Read Replies (2) \| Respond to of 164687

>156 will not be a ceiling. It is only a ceiling if there is massive selling of the converted stock. I have seen several posts regarding the 156 price and am confused. KIS even mentioned that scamsters will push the stock up there so Bezos won't have to make the first interest payment. My understanding was that 156 was the conversion price. Doesn't affect interest payments. Doesn't do the bond holders any good to convert unless it's signficantly above that. The forced conversion by the company would only come if it trades for 20 out of 30 days at 150% of that, or about 238. Earlier this year I understand many of the bond holders shorted the stock above 200 and voluntarily exercised their conversion option at 156. Those doing it now would seem to be taking on unnecessary risk, as the stock is below that currently. Pleas set me straight.

To: Tom D who wrote (67892)	7/15/1999 6:10:00 PM
From: Bill Harmond	Respond to of 164687

Well said, Tom!

To: Tom D who wrote (67892)	7/15/1999 6:45:00 PM
From: John Donahoe	Respond to of 164687

I agree completely.

To: Tom D who wrote (67892)	7/15/1999 6:53:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164687

Fidelity Magellan Fund tops $100 billion in assets By Cal Mankowski NEW YORK, July 15 (Reuters) - A combination of new money, a rising stock market and astute stock picking combined to make Fidelity Investments' Magellan Fund the first in the world to reach $100 billion in assets Thursday. Fidelity announced in the afternoon that Magellan's assets had climbed to $100.1 billion, exceeding the assets of all stock funds in 1984. With 5.4 million shareholder accounts, Magellan won the race to $100 billion even though it has been closed to most new investors since 1997. Existing owners can buy more shares and new investors can join through retirement plans offered by employers. Manager Robert Stansky took the helm in June, 1996, boosted the Magellan Fund's performance and rebuilt confidence after the fund lagged under a previous manager, analysts said. "All you have to do is look at (Stansky's) career of stock picking," said Jim Lowell, president of Fidelity Investor, a newsletter that tracks Fidelity funds. "Certainly he is one of Fidelity's top stock pickers, he is ranked in the top five consistently." Lowell said the Magellan manager cut back on technology stocks in early 1998, sidestepping a drop in the sector but then "he went back in with a vengeance" in October. This year Stansky also cut back on technology in April, said Lowell. Lowell said he believes critics who say the manager has been trying to mimic the Standard & Poor's 500 stock index are wrong. Robert Pozen, president and chief executive of Fidelity Management and Research Co., noted that of about 350 stocks currently in the fund, more than 100 are outside the S&P 500. "If he wants to (Stanksy) can have half the fund in mid-cap stocks and and half in large cap stocks," Pozen said in a telephone interview. "I think he's got plenty of room to maneuver." The S&P 500 is comprised of larger stocks based on market capitalization which is share price times number of shares outstanding. The median stock in the fund could be bigger than the median in the S&P 500 or it could be considerably smaller, Pozen said, adding there is a large range of stocks from which Stansky can pick. Pozen also dismissed the contention of critics who say Magellan, because of its size, must invest only in the largest stocks. Burton Greenwald, a Philadelphia-based fund industry consultant, said Magellan represents a "solid, conservative way to invest in equities." Greenwald said that Fidelity, the largest U.S. fund complex, will be careful Magellan, its flagship fund, does not again become a laggard like it did in 1996. Then-manager Jeffrey Vinik turned cautious and put a significant portion of Magellan's assets into cash and bonds. But the stock market kept moving higher and the fund underperformed. A listing of the fund's biggest positions as of the end of June showed its two top stocks were General Electric Co. <GE.N> and Microsoft Corp., <MSFT.O> unchanged from March. AT&T Corp. <T.N> and Lucent Technologies Inc. <LU.N> joined the roster of the top 10 holdings while America Online Inc. <AOL.N> and Time Warner Inc. <TWX.N> were no longer in the top 10. Despite Magellan's ranking as king of the funds based on size, industry experts expect the rival Vanguard Group's Vanguard 500 Index Fund to eventually overtake it. The Vanguard 500, which seeks investment results corresponding to the price and yield performance of the S&P 500 index, currently has about $93 billion in assets. "I'd love to see Fidelity close the doors at $100 billion so they don't have to suffer shots across the bow when Vanguard surpasses it," Lowell said. Asked if he would consider shutting the fund completely, Pozen responded, "never say never, but there are no present plans that contemplate doing that." Through Wednesday, Magellan was up 15.7 percent so far in 1999. The Vanguard 500 was up 14.5 percent. From 1977 to 1990 Magellan was run by legendary invest...