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Technology Stocks : Creative Computers(MALL) -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (360)	11/20/1998 6:08:00 PM
From: Tom Hua	Read Replies (2) \| Respond to of 1634

Rock, they probably won't announce the record date to qualify for UBID shares. There's time for the company to do so next year. They still have to clear all tax legalities with the IRS to assure the distribution is treated tax free. For the purpose of discussion, assume the date of record is June 30, and MALL trades at $x/share, while UBID trades at $y/share on June 30. Then on July 1, the price of MALL will immediately drop to approximately (x-0.719*y). It works out similarly to a stock split. Make sense? Regards, Tom