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Technology Stocks : HNC Software (HNCS) -- Ignore unavailable to you. Want to Upgrade?

To: Red Dragon who wrote (166)	11/18/1999 2:15:00 AM
From: Jon Khymn	Respond to of 226

>>What am I missing?<< You may well be right and not missing anything, Red Dragon. Each stock is differnt and they act differently. But as Tom mentioned, the history of back-door ipo has been that either the day of ipo or a day or two days before the ipo the 'mother company' stock tanked pretty good. (except DLIA, which started to tank, a few days after ipo) Message 8890700 More examples of back-door ipo- DBCC, ZD, what else is there,,, (someone please help me here, my memory is getting dim, getting old...) There are always an exception, but statistically, I'll say we have better than 90% HNCS will tank with in a week.

To: Red Dragon who wrote (166)	11/18/1999 8:00:00 AM
From: Tom Hua	Read Replies (1) \| Respond to of 226

If HNCS plunges while Retak soars, then everyone (including myself) will buy as much HNCS as we can, because we will eventually be able to trade them in for higher Retek shares. A classic arbitrage play. RD, let's assume you do that when RETK is soaring, what'll you do when RETK tanks afterwards? Remember shares distribution won't occur until mid/late next year and anything can happen to RETK price in that period. Take a look at UBID last December, it shot up to as high as $180s. MALL shareholders would receive 0.8 shares UBID per MALL share. We're looking at $145 for MALL shareholders right? But MALL only traded in the 30s/low 40s. Regards, Tom