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Strategies & Market Trends : ZixIt Corporation (ZIXI) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (35)	10/13/1999 8:46:00 PM
From: Kip518	Read Replies (2) \| Respond to of 4120

Tom, ZIXI filed its 8K today on the Anacom merger. I've been puzzled by the recent strength in ZIXI's stock, particularly the ramp up on Monday. Of course, there could be lots of reasons for it, including, possibly, hedgers and MMs squeezing shorts. But I don't buy the MSFT rumor as the spark as the volume was too large and buys too strong to be RB/Yahoo dummies. Serious money was thrown in here. I got wondering about this statement in the merger agreement. The number of shares to be delivered, set at a minimum of approximately 190,000 shares, may be increased, depending on the market value of the stock at the time of delivery. Stock is to be delivered in two blocks but we weren't provided dates for the transfers nor told how they would be priced. I believe it is common in such agreements to price shares at an average over a particular period. One would assume that the first block was to go out shortly after the merger. On Oct 1 (date of the merger) shares closed at 28 5/16 but by the end of the week they were down to 24 3/8 and looking very weak. On Monday, they were boosted back to the 28s and have closed close to that price since (including during the past 2 serious market-whack days!). I'm only speculating here but it seems plausible to me that price has been supported to set the number of shares going to Anacom using $28 (remembering, of course, the lower the stock price the more diluting the deal as Anacom gets more shares). If this true (and I do not know that it is), then the price is likely to tank once that support is gone -- which, in this scenario, should be soon. This is all rank speculation on my part but it does offer an explanation for why this POS got bulky in a crap market. freeedgar.com

To: Tom Hua who wrote (35)	10/13/1999 8:53:00 PM
From: Jeff	Read Replies (1) \| Respond to of 4120

Hey, Is this some kind of evil alternate universe- Spock with a goatee- kind of deal? Tom's acting like a Yahoo long, Intel blows its numbers, USMA is shorting, a p&d artist under investigation gets a cnbc mention, and the #2 SEC enforcement guy goes to the Motley Fool... the end must be near :)