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Technology Stocks : MCI Communications (MCIC) -- Ignore unavailable to you. Want to Upgrade?

To: shoe who wrote (1613)	4/20/1998 10:57:00 PM
From: John Stinnett	Read Replies (1) \| Respond to of 1692

I would say that the reason people are willing to pay more for MCIC than the collar ($51) is that WCOM's 20 DMA is above $41 meaning that the same conversion factor applies to a higher share price of WCOM for your MCIC shares. For example if WCOM's 20 DMA = $43 then the value of you MCIC stock is $43 x the collar's upper conversion factor 1.2ish which means your MCIC is worth $51-$52 after the merger. When MCIC goes over the $51 offer price IMO I would say this is bullish confidence that WCOM's 20 DMA will exceed $41. Did this help or confuse matters? John