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Technology Stocks : MAGIC SOFTWARE-MGIC -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (155)	1/20/2000 9:20:00 PM
From: Richard Tsang	Respond to of 219

MGIC has a small float. The stock split will help increase the shares available to the investing public. However, with the positive momentum resulted from their "road show" their stock is in strong demand. To satisfy the need, MGIC will issue more shares in addition to the split. The purpose is to raise some cash for operations and possible acquisition purposes. As indicated, a major shareholder will also sell some of the holding thru this placement. As an investor, I welcome that move. If the shares are sold in the open market from that shareholder, it will increase the supply and drop the price. Notice that MGIC stock price has a lot of support at the 75 level after it came back from below 60. I got a feeling that the houses are trying to support the price so as to fetch a better PP price. I like the move in the last few days. FWIW> Rich

To: Dorine Essey who wrote (155)	1/21/2000 1:39:00 AM
From: Dale Baker	Read Replies (2) \| Respond to of 219

Companies that want to raise new money can do it 3 ways - borrow from a bank, get an investment firm to sell bonds for them or sell new shares of their stock. MGIC has a strong stock price so they can sell a little bit more and bring in new funds for development. At the same time, one of their individual shareholders will sell some of his shares at a fixed price in the deal. This is an ordinary, healthy move by a growing company. It just increases my resolve to hold the MGIC shares I bought at 35 (at Rich's urging - he is the MAGIC MAN!).