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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Craig Schilling who wrote (48430)	2/22/1998 2:40:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Craig - Re: ".. what effect all of us who currently hold INTCW's will have on the stock price." I would guess that "arbitrage" players will keep the warrants in line close to the stock price, less $20.875. As for stock splits - I think you are anticipating that a little soon. Intel generally gets well above $100/share before the board splits the stock. This time, there are enough authorized shares to invoke a 2-for-1 split without shareholder approval (for creating new shares). Paul

To: Craig Schilling who wrote (48430)	2/22/1998 3:00:00 PM
From: Brian R.	Respond to of 186894

Craig wrote: Another interesting point I've been trying to factor into the INTC equation is what effect all of us who currently hold INTCW's will have on the stock price. By the second week of March I have to sell my warrants and buy the stock if I want to continue to hold INTC. That tells me we should see many others who will be buying over the next two weeks, this should help to continue the momentum upwards or maybe that's what is helping it to excel at this point. I have wondered about this as well, however, I was thinking in a little different direction. I may be wrong about this, but it is my understanding that INTCWs give you the right to purchase new shares of INTC at a fixed price. In other words, you would not be buying shares in the normal open market from some other existing shareholder; instead, you would be buying shares directly from Intel. So here's my question: does Intel have shares in reserve to issue to cover the warrants or will Intel have to buy the shares in the open market and sell them to those exercising the warrants? Maybe Ibexx or somebody can help sort this out. If there are new shares coming into the market, what would that do to the float/price/etc.? Or, are we to "assume" that those who buy and sell large chunks of INTC have already factored that into the current share price? I await enlightenment... hope someone can help sort this out. Thanks much, BrianR