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

To: Phillip C. Lee who wrote (9471)	3/14/1998 5:25:00 PM
From: Eric Yang	Read Replies (1) \| Respond to of 213176

"There is no point to worry about bond/stock conversion because those bondholders are not the same group of stockholders. We all have discussed here the whole morning." Phil..I've read all those post and I'm not worried about the convertible notes. As stated in my analysis post on Yahoo these notes are worth a lot more to the note holder than the $29.205 conversion price..A LOT MORE. I project its value at $8 or more above the $29.205 conversion price. messages.yahoo.com@m2.yahoo.com But there are several issues we must address. Even though the actual note to stock conversion may not take place until AAPL trades in the high $30-$40 range, but once AAPL trades above $29.205 Apple will be required to add 22.6 million shares into its fully diluted eps calculation once the benefit of the hypothetical $10 million saving/quarter cannot offset the dilution effect. Its important to realize that once AAPL trades at significantly higher price than $29.205, it becomes advantageous for these noteholder to short sell AAPL using the uncoverted notes as a way to cover..the logic behind it is presented here... messages.yahoo.com@m2.yahoo.com Eric