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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Arcane Lore who wrote (11629)	10/13/1999 11:18:00 AM
From: Arcane Lore	Respond to of 18998

The Coinstar (CSTR) mini-tender may be more illustrative than Navarre (NAVR) one of the scenario Growth Capital Corp hopes for. Just as with NAVR, the CSTR mini-tender involved a slight premium on the date (9/23/99) that it was made (closing price on 9/23 was 9 5/8 according to Yahoo! vs GCC's offer of $10). Thus someone who doesn't bother to read the conditions of the mini-tender may be satisfied with the slight premium apparently offered by the GCC offer. Yesterday, CSTR closed at 11 9/16. If this price holds or increases by the closing of the mini-tender, GCC can buy up to the number of shares tendered (but no more than 1,000,000) and immediately flip them into the retail market for a quick profit (naturally they may not be able to sell that many shares without depressing prices but within the aforementioned limits thay can buy as many as they can sell profitably). Since nothing obligates them to buy more shares than they can profitably sell, the mini-tender offer is essentially risk free to GCC). All of the above other than the historical facts represents my opinions only.