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Technology Stocks : XLA or SCF from Mass. to Burmuda -- Ignore unavailable to you. Want to Upgrade?

To: coach4def who wrote (665)	8/11/2000 11:05:10 AM
From: Labrador	Read Replies (1) \| Respond to of 1116

Why does the stock trade up on this news? First they say that the gain was not as large as assumed; then they say that they'll liquidate some of the company's cash to permit shareholders to pay any tax that's due. So the company's coffers are being reduced to pay taxes. If this is so positive, they should pay out the entire gain to shareholders. What would be more positive if they'd say that there is no tax due to the U.S. gov't. All I can think of is that mgmt perceives that shareholders are running to avoid a tax hit. I think that they're running from much more than that.

To: coach4def who wrote (665)	8/12/2000 4:15:22 PM
From: Scott Bergquist	Read Replies (1) \| Respond to of 1116

As you may have seen, coach, Xcelera intends to make shareholders whole, IF need be. They will issue a dividend for whatever amount makes the tax bite a non-issue for shareholders. The dividend could even be Exodus shares that the company is holding (no taxes until the shares are sold). The company HAS to be somewhat deliberate. They cannot just "ready, shoot, aim". I know this is a TV-commercial-world, where all posed dilemmas are solved in 30 seconds, but really, the company has about eight or nine ways to approach this problem. It cannot be handled with a series of ideas, one replacing the next. Vagueness is sometimes necessary in this litigious world. Now, they have TWO class-action suits against the company, because of the price action of the stock. As you can see, deliberate is the more prudent path.