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

To: Thomas M. who wrote (49121)	3/1/1998 11:08:00 PM
From: David S.	Read Replies (1) \| Respond to of 186894

Barry, I think Dakota is getting this wrong and Sonny is not helping too much. Sorry Sonny. Virtually all of the warrants will be converted and it doesn't matter if the person holding them sells them or converts them as they are so deep in the money, whoever buy them must convert. Lets say that the conversion price is 20.75 and the stock is at 92.75. That means the warrant has the value of $72 (92.75-20.75). Anyone who lets $72 expire worthless is a complete moron. So essentially all warrants will be converted except for a few idiots who forget (by the way a lot of brokers will end up being sued for failing to make sure their clients convert). That means the number of shares now outstanding will be increased by the number of warrants outstanding. However, in the process the $20.75 paid to convert each warrant will be paid to Intel who issued those warrants about 5 years ago. Intel will therefore be receiving a ton of money over the next two weeks. You figure it out, if there are 40 million warrants outstanding and multiply that by 20.75, it should be about 830 million dollars pure cash coming into the bottom line. Since the share dilution of warrant conversion is already anticipated,the earnings picture may be enhanced by this event. Some math type needs to figure out by how much. Regards, David S. Long on Intel and Iomega