Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: DavidD who wrote (12607)	11/26/1998 8:51:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 74651

<Yes, but if they are called on the puts it will reduce their net worth by six billion, or almost 1/3. In other words, there is a risk that the price/book is understated.> You keep saying this, and it is not true. If you have 100 dollars and you buy stock with $33, you are not losing 1/3 of your net worth, you are exchanging one asset for another. You lose 33% of your worth if the stock price drops by 100%. Thier net worth will be reduced by the amount the stock decreases from present levels less the premiums gained from the warrant sales.