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

To: Bald Man from Mars who wrote (7343)	2/6/1998 5:05:00 PM
From: Trevor Goodchild	Read Replies (1) \| Respond to of 12559

BMFM An acquisition offer is no guarantee of a short term windfall. Any premiums could disappear instantly (good ol' efficient market) and turn into a painful experience. A $40 share of CSCC was converted into .7 shares of ASND at $23 very quickly by the market. Both shares took nosedives in sync after the announcement. (I believe this to be the case, correct me if I'm wrong) If we got cash (not likely) it wouldn't be a problem. Since we're more likely to get shares from a lower PE company, our FPE growth multiple valuation instantly gets blown away and is absorbed into theirs (lower, much lower) and their stock (the purchase vehicle) is instantly diluted along with their ROE so that their stock (now ours) is revalued by the market based on the new ROE. Not good.