Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bill Uzzell who wrote (51965)	4/3/1998 8:07:00 AM
From: Charles Skeen	Read Replies (1) \| Respond to of 186894

Re: Is warrant expiration pushing INTC down? Warrant expiration can often have a short term negative effect on the price of a stock. The speculative types holding warrants are usually unwilling to put up the full cash for the stock, although margin borrowing may help, so the warrants get dumped. Market makers may acquire the warrants but they sell the stock at the same time, later covering their short positions through exercise of the warrants. In the case of Intel, with high liquidity and deep-in-the-money warrants, the impact of warrant expiration may not be so great. Also, Intel can use the cash received from warrant expiration for stock buybacks. I think the main reason that INTC has not been a great performer of late is diminished earnings expectations, pure and simple. Charlie.