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

To: RockyBalboa who wrote (517)	11/24/1998 5:27:00 PM
From: Tom Hua	Read Replies (1) \| Respond to of 1634

Christian, There should not be a discount when UBID becomes shortable, otherwise people can buy MALL and short UBID and lock in the spread. I don't expect a discount even before UBID is shortable either. A discount will bring in MALL buyers and effectively eliminate the gap. So, I think MALL will trade based on 0.72*U + X, where X is the non-UBID business portion of MALL. Given the fact that tech issues have risen significantly in the past six weeks when MALL was trading at $8, X is probably worth more now. Let's assume X=12. If UBID trades between 30 to 50, MALL = UBID +/- 2. Today's close is equivalent to UBID of $31 which is in your buying range. Regards, Tom