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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Lerxst who wrote (649)	8/31/1998 11:38:00 PM
From: Paul Fine	Respond to of 14638

I understand the question; it is of course an academic one, as Lerxst points out. However, after a market day like today, it is helpful for my emotional and mental stability to meander into fantasy for awhile. In direct response to John's question, I re-read the proxy statement and noticed on page 41 they refer to the "Effective Date", which refers to the final date of the merger. They state it will be 3 business days after the merger approval vote. That would be this Wednesday, not today. So if I am reading this right(and I have misread this proxy before!), the "takeout" price is not yet final. But as Lerxst points out, it doesn't really matter anymore. But for those who like to stroll down memory lane and regret the opportunities lost, by my math(subject to correction), those who held SNPX shares from 5 years ago until today made essentially NOTHING. SNPX had tumbled from $41 to mid-high $20's from mid-July '93 by August "93(after the 3/1 split). Then the merger with WFLT came at a .725 ratio, so call the new price(adjusted for loss of shares) $20. Now you add in the 3/2 split later and the price becomes $30. Today's close of NT at $47.50 is the equivalent of a Bay price of $28.50. So during the biggest bull market in memory, and the explosion of a new technology called networking, those of us who did what the "experts" tell us(buy and hold for the longterm) got less than a what we started with. So to the question of what the takeout price was, the answer is: Not nearly enough. Paul