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

To: David S. who wrote (49122)	3/2/1998 3:06:00 AM
From: Sonny McWilliams	Read Replies (1) \| Respond to of 186894

David. I think we give Barry the prize on answering the questions. I was answering the question from Xy about the brokerages buying the stock for themselves if some warrant holders forget to convert. I tried to explain that if this should happen the answer is no. BTW, there are lots of reasons, besides being stupid, that someone may forget to convert or sell. There is a saying: Crap happens. gg. The question on the conversion was: Would that propel Intel stock upwards since there are now fewer shares outstanding with the warrants gone. My answer was no again in a roundabout way, since there will not be a lot less shares outstanding after the conversion. Contrary to your view I believe it could actually have a small down side effect on the stock price. You think that the 20.875 for each converted warrant would be a cash cow for Intel. I think that many many warrants will NOT be converted. I believe a lot of the warrants will be sold in order to buy the stock. Your theory that the warrants have to be converted because they are so deep in the money does not hold water. Let me tell you. I bought quite a few warrants last Spring and I am not nearly as deep in the money with those than you think. Many investors that have bought within the last year are not deep in the money and may very well sell those warrants in order to convert their deep in the money warrants, unless they have unlimited cash. I think even Intel knows that and it's probably the reason that they are buying the warrants in the open market. Again, I was trying to address the question if the stock will go higher because there are now fewer shares outstanding with the warrants gone. I tried to explain to Dakota that the warrants traded in will become additional Intel stock and therefore will not cause a shortage of Intel stock which in turn would move the stock higher as he thought. Does it matter either way? Probably not unless you are thinking that you can get a bargain in Intel just because the warrants will be gone. Oh well, I will make this my last post on this subject. I think we have enough views now. Sonny