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Strategies & Market Trends : Arbitrage Plays -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (253)	9/27/2000 6:09:35 AM
From: Madharry	Respond to of 376

I questioned whether DIGX was worth as much a Mr. Market thought it was, and I am still at a loss how to value DIGX so my opinion on ICIX right now has more to do with the likelihood of the deal going through. I had read somewhere that below the low point in the collar, the exchange ratio was 1.18+ shares of world com for each share of ICIX so that it seems likely that as long as the deal goes through, and share prices do not drop further there is an 18+% return to be had. On the other hand worldcom faces the same issues that att faces-long distance revenues are probably declining faster than other revenues maybe ramping up. so if i sound like I am waffling it is because I am. I believe that worldcom still wants to do the deal, it makes a lot of sense from a strategic point of view, and it is hard to believe that worldcom is not worth at least $25, so I think the odds are pretty good that one can get a 20-50% return here in 6 months, but I am not confident the way that the telecoms have been hammered and it is possible that we will see tax selling and window dressing with respect to worldcom over the next month or so.