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To: Dale Baker who wrote (13614)	12/27/1999 4:06:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

RealNetworks (RNWK 133 9/16 -19 3/4) Stock plummeted on an unverified press report that Yahoo (YHOO 402 5/8 -16 11/16) will discontinue using Real Networks streaming audio format platform in favor of Microsoft Windows media platform... Merrill Lynch's Henry Blodget saying, in the event Yahoo were to discontinue use of Real Audio, do not believe there would be any material revenue risk, as it represents an immaterial portion of RNWK revenues and traffic, according to management... Interestingly enough, Microsoft (MSFT 117 7/16 -1/8) is the only single large customer, accounting for 8% of 1999 revenues... Merrill Lynch reiterated Accumulate/Buy rating

To: Dale Baker who wrote (13614)	12/27/1999 12:15:00 PM
From: HeyRainier	Read Replies (2) \| Respond to of 118717

Dale, here's a candidate for the thread. It's an arbitrage situation: The two companies involved are PFSWeb Inc.(PFSW) and Daisytek Int'l.(DZTK). Daisytek, the parent company, owns 80.1% of PFSW, and will spin off all the shares to its shareholders in mid-2000. Some numbers: PFSW-- Number of shares: 17,405,000 Market cap(at a price of $36.938): $642,905,890 80.1% of the shares: 13,941,405 80.1% of market cap: $514,967,618. DZTK-- Number of shares: 17,365,000 Market cap(at a price of $20.50): $355,982,500 As you can see, its ownership position in PFSW is over 44% the value of the parent company alone. If each of the PFSW shares will be spun off to DZTK holders, that comes to: 13,941,405 PFSW shares owned ---------- 17,365,000 DZTK shares outstanding ...equals 0.80 shares of PFSW for each share of DZTK owned. That means each share of DZTK has currently $29.50 in value of PFSW shares. Or put another way, DZTK is being priced at -$9.00. Yes, that's right, it's a negative nine dollars. __________________ SPIN-OFF FROM DAISYTEK Daisytek's Plan to Spin-off PFSweb After completion of this offering, Daisytek will own approximately 82.2% of the outstanding shares of our common stock, or approximately 80.1% if the underwriters exercise their over-allotment option in full. Daisytek has announced that it plans to complete the spin-off of our company sometime in mid-2000 (and within one year of the closing of this offering) by distributing all of the shares of our common stock it then holds to its stockholders. We refer to this distribution as the "spin-off." _______________________________________ FYI... Rainier Disclosure: Long DZTK