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Technology Stocks : Nam Tai Elec. (NTAI) -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (1331)	4/2/1998 9:56:00 PM
From: Ron Bower	Read Replies (2) \| Respond to of 1696

Thread, After thinking about it a little: 1)I don't think there are too many funds prepared to put $9.5M into Namtai at this point. Logic indicates that the company bought the shares. It shouldn't surprise anyone because it was well known that he had the margin to cover and no way to cover without selling the shares. He has not sold enough to cover the margin, but may have covered the rest out of personal funds. 2) Mr. Koo never canceled the 144 he filed before the offering as Wendy indicated he would when asked. The sale was per SEC rules. 3) Koo sold the shares at a slight loss, but he retains the warrants so he's profited, presuming the warrant pricing holds. If Namtai doesn't perform, his warrants and remaining stock will not appreciate. This now puts pressure on him to improve the company performance. 3a) Anyone that bought into the offering could have profited the same or more by selling their shares and warrants. 4) Presuming the company bought the shares, the shareholders benefit. The company is out the 16.7/8, but brought in $17.40 and will bring in another $20.50 when the warrants are called. This is an asset for the company presuming they reach the qualifying price.The dilution just dropped by the amount of shares purchased by the company. 5) The fall off in price is a buying opportunity. It's investors bailing because they saw the PR. Tommorrow is Friday, normally a selloff day going into the weekend, the DOW is near 9000. I expect major weakness tomorrow and an opportunity to get NTAIF at a good price. 6) The basics of the company haven't changed. It will soon recover. Just my thoughts, Ron