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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?


To: Land Shark who wrote (15751)8/27/2001 9:36:44 AM
From: RockyBalboa  Respond to of 18998
 
Definitely flies. YOu know, hiding expenses in stock issues.

They have done a deal with AOL similar to a deal TALK did before. You know, selling stock and compensating for the difference.

Spiralling is entirely possible.


America Online, for example, took $20 million and 3.9 million shares of stock to sign a massive marketing deal. But AOL also extracted a guarantee from Homestore that the stock will get to $68.50 by the third, fourth and fifth year of the agreement. If it doesn't, Homestore has agreed to pay AOL the difference. From AOL's perspective, it's a no-lose arrangement; if the stock goes to $100, AOL wins; if the stock goes to $10, AOL still gets a cash or stock payment of $68.50 a share.


Also see earlier note:

Message 15885316 Thanks to Auric for th endorsement,

Message 15885324

Message 15885528