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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (31715)	8/27/1998 7:04:00 PM
From: PaperChase	Read Replies (1) \| Respond to of 132070

>>How about the arbitrage play between ALA and DIGI<< Bald Man, I thought the premium ALA paid for DIGI was ludicrude. I couldn't believe the news especially when ALA said DIGI was going to be accretive to earnings going forward. All the while, DIGI's sales were down year-over-year and they were incurring losses on mature technology that was second rate. OK, I'm done venting <G> I think the arbitrage play is over since the deal has been approved by Digi shareholders and both stocks have fallen considerably. The streets of the world now recognize that DIGI will hurt ALA 's earnings and that ALA overpaid for it.

To: Bald Man from Mars who wrote (31715)	8/28/1998 10:41:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Bald, Not my cup of tea. Not enough profit for too much risk. This is a perfect example of what I call a bet a lot to make a little. But, if you are asking my opinion about whether the Digi deal will go through, I believe it will. The problem is, they aren't paying me enough to make that bet. It is similar to the race track. If you ask me if I think the 2 to 5 favorite will win, I usually believe it will. But I won't make that kind of bet. I do not believe these two firms that can't walk and chew gum at the same time will catch anti-trust fever. But, we could see some funky accounting get in the news. They all use it and it is just a question of whether or not they get caught. I doubt that will happen. I am just pointing it out as a risk to this risk free trade. MB