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Technology Stocks : Corel Corp. -- Ignore unavailable to you. Want to Upgrade?

To: Alomex who wrote (9251)	5/30/2000 3:13:00 PM
From: John Solder	Read Replies (1) \| Respond to of 9798

NAS up 200+ pts, lead by techs, CORL up 1/8. This stock is dead, stick a fork in them.

To: Alomex who wrote (9251)	5/30/2000 3:48:00 PM
From: Daniel Chisholm	Read Replies (1) \| Respond to of 9798

I disagree with those who say this deal is a downward spiral. Dunno about others, but my point is that variable-priced discounted toxic equity financings such as this one, set the stage to enable or amplify a death spiral. In the vast majority of cases, a death spiral does not happen. This is Day 3 of the Cannacord pricing period. The stock has not been torn limb from limb, but it has seen pretty heavy volume and pretty heavy selling pressure over the previous two days. Today seems more moderate, let's see what happens at the close... This deal is certainly dillutive which sends the price down around 15%. Why 15%? Why do you say the deal is dilutive? Perhaps it is accretive to per-share book value? Once that dilution is built in the price, arbitrageurs would make money from keeping the price stable for the next four days. Why? What is the stabilizing mechanism? I have pointed out a de-stabilizing mechanism (the feedback between selling shares to hedge, and the number of shares that this generates). What stabilizing mechanism is there, and how would it happen? - Daniel P.S. Apparently the borrow of U.S. Corel shares is very, very tight -- my broker said that his NY loan post could not get any, apparently the whole street is looking for CORL. Two weeks ago, it was touch and go, but shares were available in-house.