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Strategies & Market Trends : Angels of Alchemy -- Ignore unavailable to you. Want to Upgrade?

To: noneed who wrote (20225)	11/14/2000 12:59:29 PM
From: noneed	Read Replies (1) \| Respond to of 24256

12:48 ET Redback Ntwrks (RBAK) 68 11/16 -4 1/16: -- Update -- Taking a look at the issues raised in the 10Q, the first is that RBAK has a put/call option agreement with Merlin Systems, under which Redback could be required to purchase Merlin for between $40-718 mln. Greenberg reportedly questioned how Redback could afford this given its $55 mln cash position, but the 10Q clearly states that this would be a stock deal, not cash (note also that RBAK has $419 mln in short-term investments). Another point made was that RBAK sold some receivables, but it sold $5.413 mln in receivables for $5.174 mln in cash -- that appears to be more of a wise sale of risk rather than an indication of dubious accounts receivables.