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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (12259)	12/1/1998 9:30:00 PM
From: S.C. Barnard	Respond to of 13594

Yeah, it is weird. On Bloomberg radio they make up some gloss over reason for market daily performance-"fears over lower earnings"-When I saw the DJIA started at -120 when I leave the house, then it's -80, then -35 and all the time they're saying, "stocks are falling, due to.."not "stocks are coming back from their lows", just "stocks are falling/mixed" which in fact they are!

To: J. P. who wrote (12259)	12/2/1998 6:20:00 PM
From: LWolf	Read Replies (1) \| Respond to of 13594

JP... re: AOL trading flat I heard the same comment from Bloomberg this morning. It has to do with the option arbitrage process that is taken on both companies when the agreement is made, and is not complete until the closing. I don't know the details of the transactions (someone else may be able to provide a specific definition), but I've read of it, and seen it before: when CPQ bought DEC, shortly after the announcement and agreements were signed that stocks stayed flat. Even though the purchase as stated as a percentage of the AOL stock, I believe there is an intent to not pay more than the price of the value of the stocks based on the day of the agreement. There may be some fluctuation, but I'd be surprised to see any significant rise until after the purchase is finalized.