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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: Almasy who wrote (6496)	3/19/1998 9:25:00 AM
From: Michael Olin	Read Replies (1) \| Respond to of 19080

I have heard this security described the same way (in conversation and here siliconinvestor.com as combining zeros to take care of the $10 principal and options on ORCL for the upside twice now. It makes as much sense as any other explanation. I also think that you need to see the prospectus because if there are zeros involved there are different tax implications than holding ORCL common stock (granted, in an IRA, who cares). I'm wondering who the target market for this issue is. 3.1 million units represents about 25% of the average daily volume in ORCL (assuming one unit per share ORCL, its even less if the units are based on a benchmark price of say $30/share and there is one share behind 3 units). I read, and I don't remember where, that this may be targeted to institutions that can't deal with the ORCL roller coaster ride. There is not enough of this issue being offered to deal with any real institutional interest. Is it a retail, small investor, retirement fund targeted offering? I'm trying to understand how this derivative works, but not particularly interested in buying it. I've been holding ORCL on and off (mostly on) since the accounting fiasco years ago. I'm happier staying long and riding the ups and downs. ORCL is a long-term investment for me and I don't really have the time or energy to trade it every other day. I spend time on this thread to keep tabs on all of the issues that have nothing to do with Oracle's products, per se, but everything to do with the stock price. I also figure that even the people trading ORCL purely on TA might be interested in hearing about what the company is actually doing with their products every once and a while. I don't see ORCL being down from today's price in 5 years (#1), I've got plenty invested in ORCL at a basis of less than $30/share (#2), and I don't think I'm wasting my time here (#3...and hope I'm not wasting your time either!) I guess I won't be calling up Merrill for any of these OPGs. -Michael