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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Neil Booth who wrote (7636)	11/21/1997 10:48:00 AM
From: i-node	Respond to of 10836

It all depends on what you mean as dilution; i.e. what you're taking as a percentage of what. I reckon 100% ownership -> 50% ownership is 50% dilution and not 100%, so I'd call it about 24%. Dilution, by any sensible definition, must take into account the effect on earnings per share -- which, of course, is comprised both of the outstanding shares (or average shares outstanding) and the actual earnings for the period. For it to be meaningful, you'd have to consider Borland's eps AFTER the transaction. So the degree of dilution will be determined by the combined earnings, increased or decreased by the synergistic effects of the transaction. It would be pretty tough to make a real estimate of the degree of dilution at this time......

To: Neil Booth who wrote (7636)	11/21/1997 11:20:00 AM
From: max	Respond to of 10836

Neil The numbers are intriguing. What estimates on share price do you (or anyone) else see given a $500M annual revenue? Assuming it takes two to five years to realize all $500M I roughly see a $50 to $100 price. Given the current price of ~$10 this is a minimum five-fold increase in investment. Of course much depends on expenses, further dilution etc. From what I have observed in my short time as a Borland stockholder (since March '97) Del seems to be conservative in his estimates of the future. Any thoughts? TIA Back to lurking, Max

To: Neil Booth who wrote (7636)	11/21/1997 11:24:00 AM
From: Linda Kaplan	Read Replies (2) \| Respond to of 10836

Neil, Thanks for slapping my face a little. I was starting to think you knew everything. :-) So, if the dilution is 24%, and the stock was 12 the day before the acquisition announcement, it's worth 9.12 now, PLUS the value of the acquisition. So do you happen to know the value of the acquisition? Linda

To: Neil Booth who wrote (7636)	11/21/1997 1:46:00 PM
From: TonyM	Read Replies (1) \| Respond to of 10836

Hi All! I am a recent owner of Borland (Right before the announcement) and am trying to get up to speed on the nuances of this proposed acquisition. I have found this thread to be very informative and useful to read. I am wondering about some of the arbitrage discussions that I have read on here. Should such calculations really be made based on the current price of the stock, or would it be more appropriate to use something like the 21 day average to smooth out some of the noise inherent in stock prices. With the .82 exchange is would seem that the current 7 1/2 price of VSGN would be a steal. Any comments? Tony