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


To: william binder who wrote (708)11/27/1998 1:32:00 PM
From: SkyDart  Read Replies (1) | Respond to of 1634
 
My understanding is that Mall shareholders will receive 80% of UBID 6 months after the IPO date in a tax free distribution.

However, this translates into an immediate rise in Mall shares for most of the traders on this thread per a formula which roughly values MALL share price at 73% of the predicted UBID IPO.

Therefore the pre-IPO run-up is/was a no-brainer.

However once the UBID IPO actually comes out and UBID trades in the secondary market, the mall price will rapidly adjust either UP or DOWN to about 73% of UBID's share price IMO.

Therefore the risk increases ALOT after the IPO.

Good luck,

Jeff