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Technology Stocks : DIGL... Digital Lightwave.... Making Waves.... -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (849)	8/27/2000 5:05:08 PM
From: Ryno	Read Replies (1) \| Respond to of 934

Since Dr. Zwan owns over 10 percent of DIGL, would he have to register an intent to sell with the SEC prior to selling? ryno

To: UnBelievable who wrote (849)	8/29/2000 9:47:34 PM
From: Toby Zidle	Read Replies (1) \| Respond to of 934

I really can't find any negative news concerning DIGL other that the resignation of Zwan from the BOD and associated concerns of the potential effects on price if he just dumps his shares on the market. I find myself agreeing with your statement, "I would believe that even if he wished to divest some or all of his significant holdings that self interest would preclude him from dumping them all on the market at once." If all this price negativity derives from investor fear of Zwan's dumping, then we are giving him less credit for being a rational investor than we would wish to give ourselves. If anyone is motivated to preserve price stability, it should be Zwan. He has more to lose than any of us from a supply-glutted market for DIGL. He'd lose Tens or Hundreds of Millions of dollars from turning his holdings over to a broker with simple 'sell at market' instructions. How could we believe that he'd do that? Zwan probably uses a good tax lawyer to reduce his tax obligations. He probably uses a good estate attorney to maximize what his family would retain in the event of his passing. ...a good insurance specialist for life and health insurance needs. .... a good financial planner to keep him more than solvent in his elderly years. ...a fine physician to guide him on health matters. Why would we think he'd simply reek havoc on his own share value by tossing his stock certificates to the market wolves with no deeper strategy than 'sell'? That's nonsense. One ought to feel confident that Zwan has an expertly qualified financial advisor to make a transition from DIGL shares to his new investment objectives with an absolute minimum of disruption to his personal financial well-being. Perhaps he will have an investment banker arrange private placement sales to a variety of institutional holders that will be transparent to the market as a whole. (I find that a quite likely approach.) Perhaps there will be a Secondary Offering of DIGL shares on Zwan's behalf by the corporation, with again most shares privately placed. Possibly he could even buy control of another company using DIGL shares as currency for a stock swap. There are many possibilities besides just dumping his shares on a glutted DIGL market. I believe, as you do, that Zwan will be motivated by rational self-interest to pursue a course in which as much DIGL value is retained as is possible. If such is the case, and if the drop in DIGL price does not come from other concerns such as earnings warnings, etc., then this whole price drop is way overdone and represents an unusual buying situation. I simply hope that others will concur with this analysis and put their money where their heads tell them is a strong investment opportunity. Now, why aren't the investment analysts telling us this? Probably because none of them have thought of it in this way and the rest of the sheep have no one to follow.