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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Richard Nehrboss who wrote (39111)	12/11/1998 2:00:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Richard, The last place I want my money is in second tier channel cos., not with the glut I see developing in pc boxes. Not only that, but Vanstar was doing horribly during the good times. Last quarter sales declined nearly 25%. Man, that is awful. And the way they report their eps, or lack of same, makes me suspicious. We made a penny. Not counting an 85 cents writeoff here and a reorganization charge there. Yow! So, my answer is I wouldn't touch the companies involved, so I probably wouldn't play the deal no matter how sweet the arb looked. However, if I were playing the deal, the first thing I would insure is a very large rebate on the short stock. That is often hard to get with these illiquid issues. But I wouldn't play any arb without at least an 85% short rebate, and the major players get upwards of 97%. MB