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Non-Tech : RAINFOREST CAFE -- Ignore unavailable to you. Want to Upgrade?

To: Frank McVerry who wrote (4646)	8/21/1999 10:57:00 PM
From: Frank McVerry	Read Replies (1) \| Respond to of 4704

RAIN put options Well, it is now safe to say that the Aug 5 puts on RAIN have finally expired at zero value and it is interesting to consider some of the consequences of the Aug options expiration The company likely had to wait until this time, just in case these puts came 'in the money' before expiration and the put owners 'put' 400k shares back to RAIN to buy at 5. This didn't happen, so it means at least two things. First, the recent run-up in price was not caused by any stock accumulation by the put owners, in order to 'put' shares back to RAIN - this is good. Second, in order to honor the share buyback, as RAIN were not presented with the 400k shares due to put exercise, they will now have to go to the market and buy these 400k shares directly, in the coming days, weeks and months - this is also good. The Aug 7.5 puts expired slightly in the money, so it is likely these will be exercised, meaning that RAIN will be buying-back some 60k shares immediately at $7.50 (though their net cost will be less, taking into account the money they received for selling the Aug 7.5s) - not a huge buy, but at least it's another 60k shares removed from circulation. FWIW, Frank