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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Leo Francis who wrote (7609)	11/8/1997 5:17:00 PM
From: Jan A. Van Hummel	Read Replies (3) \| Respond to of 14577

Leo, I failed to express myself clearly. You sold your shares so your only interest is to recover consideration. Those still holding shares can also recover the same consideration, however, my argument is that any payout by the company to current and past shareholders will diminish the value of the stock by a factor greater than 1. I have no way of knowing to what extent Director's insurance will shield the from potential damages. Therefore, I argue that any settlement has no bearing on past shareholders, like yourself, but will have a bearing on current shareholders. As long as the stock's market value (MV) exceeds its book value (BV) every BV dollar out means a MV/BV decrease in stock price. Nonetheless, whatever may come out will be peanuts with a good percentage going to lawyers. IMO the net effect for me would be worse, so we are on opposite sites of the continuum on this one. JMHO Jan