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Technology Stocks : STARBASE (SBAS)- InfoWorld Hot Product Review -- Ignore unavailable to you. Want to Upgrade?

To: SIer formerly known as Joe B. who wrote (1116)	2/17/2000 4:42:00 PM
From: Elroy	Respond to of 1502

I sure hope SBAS tanks just b4 the conversion though. I wish I had the balls to have shorted SBAS at 17 and covered them with OBJS. It doesn't really work, though. All you know is that if you have 1,000 shares OBJS (which cost you about $500 today), then you will receive $710 worth of SBAS stock. But, since the conversion ration will not be determined until merger is done (using the average SBAS price for the three preceding days), you won't know how many shares to short. I don't think this is a long-short arb, it is just buying $710 worth of something for $500. That's why I say the only risk is the 2-3 days it'll probably take for the brokerage to get the SBAS into your account so you can then sell it. It'll be $710 SBAS on the day the merger is complete, but who knows what SBAS's share price will be a few days later when the shares actually are in your account for sale. Long winded, but whatever. I wish I hadn't sold my original SBAS at $9! Still, got in below $2 so I guess I shouldn't complain. Elroy