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Technology Stocks : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (345)	2/3/2000 12:24:00 AM
From: StaggerLee	Respond to of 360

Implied volatility has dropped to a measly 159%. Now the Feb 10 calls will only provide you with a 12.5% return in just over 2 weeks, while at the same time protecting you from losses all the way down to $8.625. Even then, you could roll the option down (i.e, buy the 10 back at a profit and sell the 7.50)and still probably earn some bucks before expiration barring a complete collapse. (Stock drops 20%, you still make money. Gotta like that.) In reality, if you're selling calls and willing to limit your upside, it would probably take a drop well below $8 within two weeks to risk any loss whatsoever with CYOE.

To: Mama Bear who wrote (345)	2/4/2000 11:39:00 AM
From: Q.	Read Replies (1) \| Respond to of 360

How do you like this: the new CEO paid his private companies 2 million shares of CYOE stock for consulting services. On top of that, the new leasing company was his, too. Amazing! The co. will have to write off something like $10 M against earnings for this; that's the apparent value of this gift to himself. Did this company pull out all the stops to enrich the new guy at shareholder expense, or what? In connection with his election to Coyote's Board, Mr. McCullough relinquished his 25% interest in First Venture Leasing LLC ... On January 26, 2000, the Company also entered into a Consulting Agreement with KRJ, LLC to provide strategic consulting services designed to enhance Coyote's position in the application service provider (ASP) market. The consulting agreement has been approved by Coyote Network Systems Board of Directors. Mr. McCullough has an approximately one-third interest in KRJ. The terms of the Company's agreement with KRJ were the result of arms' length negotiation in which Mr. McCullough did not participate. The balance of KRJ is owned by affiliates of First Venture. The Company issued to KRJ 2,000,000 shares of unregistered common stock, with no registration rights. In connection with the issuance of the shares to KRJ, the Company anticipates recording a one-time, non-cash charge to earnings of approximately $10 million in the fourth quarter of Fiscal 2000. On January 26, 2000, the Company entered into a financial services agreement with First Venture Leasing LLC, designed to provide a vendor lease facility for Coyote's customers. The terms of the Company's agreement with First Venture were the result of arms' length negotiation in which Mr. McCullough did not participate. The Agreement with First Venture was approved by Coyote Network Systems Board of Directors.