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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (3594)	6/10/1998 5:07:00 AM
From: Tom Simpson	Read Replies (1) \| Respond to of 9256

>Not quite... You get 14.935 shares per $1000 face. But you don't buy >zeros at face, now do you? You buy at discount. So $354.71 / 14.935 = >23.75 strike price. Quite right...quite right. And I guess that means a clever fellow should have shorted 14.935 shares of stock per bond here recently at 22. That gets most of his cash back, leaving him with about $27 in the position to get back about a net $645 in 20 years. Now that is something I could go for. I must be missing something here. >4.40 at 6/31/98 You don't understand. This is a brilliant move by WDC management to spoil the ground for Maxtor's upcoming IPO.....a pre-emptive strike so to speak, put a hole in the Smith Barney balloon, stop all this nonsense about U shaped recoveries, upgrades, and turning the corner. In short, keep those other guys starving for capital. >Now RDRT or KMAG may be trading at book, but WDC is different... >right? by tomorrow those two could well be under posted book..... and yes, WDC is different, mainly because it doesn't have the same relative and absolute hugeness of PPE at stake.