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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin F. Spalding who wrote (8703)	2/6/1998 6:23:00 PM
From: Frodo Baxter	Respond to of 11057

Sure does look like a Reg S. More disturbing to me is that it's zero coupon! Sounds more like preferred stock than convertible debt. p.s. I've never seen a company come out in stronger shape after a Reg S.

To: Kevin F. Spalding who wrote (8703)	2/6/1998 7:23:00 PM
From: tom pope	Respond to of 11057

>>I saw this [convertable subordinated debenture] as a red flag<< I agree. The potential dilution is not insignificant, but what bothered me the most was the total lack of detail as to the conditions of the offering and that it was to be done via an offshore private placement in order to escape SEC registration requirements. This suggests that speed is of the essence - they need the cash and they need it now, and SEC registration would introduce unacceptable delay. Those who earlier on this thread predicted that they smelled a cash crunch now have evidence to back them up. Long qntm or seg/short wdc looks like a good arbitrage right now. P.S. The new spell-checker red-flagged me on >>debenture<<. This is SI?