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

To: Zeev Hed who wrote (3260)	7/21/2001 1:00:20 PM
From: BWAC	Read Replies (1) \| Respond to of 3813

<Who are the fools that are buying this instrument, and why, is beyond my comprehension. > There is some sort of Put language in the convertible? And maybe whoever is buying has some sort of visibility? It certainly sounds like a terrible deal for the convert buyer on the surface. But somebody has $800 cash they'd like to invest in semi-equip land, at zero interest, for future 30 year stock appreciation potential. (Or they intend to short NVLS into the ground for 30 years). One thing this deal does possibly point out. There is money wanting to invest in tech. But somehow it is being diverted from a direct investment in the stock on the open market to a behind the scenes nonpublic institutional financing vehicle. Makes one wonder about all the fear we hear in the media, and from the pros, when these type convertible deals get done. Especially ones well above market price and zero interest.

To: Zeev Hed who wrote (3260)	7/21/2001 1:39:18 PM
From: robert b furman	Respond to of 3813

Hi Zeev, That's why I was working on a bar napkin.ggggg I didn't know the conversion.Your number checks out.That is a stroke genius when it comes to raising money.I think the desire to have the stock is the motivator - I think there is a plan on the table that has yet to be announced and some big players like what they see. It is encouraging to see that some people with a lot of money are desirous of Novellus's stock more than they are 800 million dollars (with out an interest rate return).That certainly is a bullish argument for the stock!!! Thanks for the great detail.I don't fully understand what is going on here,but I'm feeling better about owning the stock.ggg This now makes them a more compatible equal for a merger with Lam. BWDIK Bob One thing for sure with money rates as low as they are - NOW IS THE TIME TO RAISE MONEY!!!

To: Zeev Hed who wrote (3260)	7/22/2001 1:06:05 AM
From: Jerome	Read Replies (2) \| Respond to of 3813

Zeev... thanks for doing the math and explaining why this was a good deal for NVLS. So this brings up another question.. That is...why was not this deal offered to AMAT? If ML made this offer to NVLS and to LRCX, then they were probably setting up some other plan that we are not aware of. Could it be that they are betting that NVLS and LRCX are going to the two near term winners in the group? That would be the incentive to the buyer of these long term debt instruments. Like someone said a long time ago..."banks are in the business of lending money to people who really don't need it." I think the same applies here. Jerome