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Technology Stocks : Data Broadcasting Corp. (DBCC) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (4129)	1/17/1999 9:43:00 AM
From: PAL	Read Replies (1) \| Respond to of 5102

People bought DBCC for one reason only: IPO of MKTW. Buy on rumors and sell on the news. You hit the nail right on the head about arbs action in taking advantage of the disparity between MKTW and DBCC. For those longs, one question: Would you spend additional money to buy DBCC at current price? If your answer is NO, then why are you holding your shares? If the answer is YES, good luck. Do you think DBCC will go back to the 30's? Or you are just trying to get an extra dollar for the shares? As to the person buying at the market at the open, there is always a tuition to gain experience. Paul.

To: Kevin Podsiadlik who wrote (4129)	1/17/1999 11:28:00 AM
From: drakes353	Read Replies (2) \| Respond to of 5102

Kevin: So now, people are going to be unwinding positions. True, this does mean some covering on DBCC, but it also means MKTW will be sold off. IMHO these forces will tend to cancel each other out in the short term. Not a chance. The arbs won't unwind until DBCC trades at a substantial discount to its MKTW value, probably around 40% Using Friday's MKTW close, it's safe to assume you wouldn't see wholesale arb unwind until DBCC trades at around $13 (97.5 * .138 * .6 + $5) Here's a table for the math challenged out there (not directed at you) that shows you where DBCC "should" trade based on MKTW's price: MKTW-->DBCC 50----->9.14 60----->9.97 70----->10.80 80----->11.62 90----->12.45 100---->13.28 110---->14.11 120---->14.94 130---->15.76 140---->16.59 150---->17.42 160---->18.25 170---->19.08 180---->19.90 190---->20.73 200---->21.56 210---->22.39 220---->23.22 230---->24.04 240---->24.87 250---->25.70 Regards, drakes353