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

To: Secret_Agent_Man who wrote (36)	7/27/2000 1:25:49 PM
From: Paullie	Read Replies (1) \| Respond to of 75

I like your thinking on the STLW/METHA situation. I agree that the wording is there for a reason - because METHA does not have to distribute the remaining shares, even though it "might" (my word) be their intention. Question to you and all: Currently, roughly 85% (I think 86.?%) of shares are owned by METHA. Won't the distribution of these shares essentially cause the float to be increased approx. 7 times what it is now, which theoretically could reduce the price of the stock to 1/7 of its value at the time of disbursement. (Now, don't jump on me here - I don't think the stock would go down this much, but there would be pressure based upon increased supply.) Now I know that market cap is the price times outstanding shares, and that number will not change with the disbursement (assuming no price change) - (nor will the amount outstanding change), but what will change by the above ratio is the supply / demand issue. There will now be 7 times more supply and the demand theoretically would be the same. I view STLW as in the right sector at the right time and am looking to purchase after the NAZ corrects here if I can find some good explanations for my concerns. Please explain to me whether or not I am on the right track and what will prevent the downward pressure on STLW after the disbursement is announced. Thanks Paullie