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To: kili who wrote (1880)	1/22/1999 1:28:00 PM
From: Rob	Respond to of 7721

Kim I must disagree. Your argument is valid only until the warrants are exercised. > 2,000 warrants @ 7 better than 1,000 shares @ 15. However, it's an illusion. A 10% price increase on both instruments, assuming the total value/initial investment of the portfolio is equal, will maintain the status quo. If your assumption is the stock will rise an astronomical amount that will be based on # of shares not the total value/initial investment. That holds even though you have to increase your investment when you exercise the warrants as even if you invest an equal amount in new shares you would get only 1/2 the # of units. Rob

To: kili who wrote (1880)	1/22/1999 8:58:00 PM
From: mark calder	Read Replies (1) \| Respond to of 7721

Ok here's the reason to own warrants right now, the assumption is that the stock will hit 24 and stall, if this was true the percentages of gain are the same between the stock and the warrants. In this scenario the warrants move 50 cents on every dollar of stock movement. HOWEVER, This scenario could also happen, good and I mean GOOD news could break and send this thing soaring, besides good news upward movement in this case is self sustaining, warrant exercise and the 100 million cap will bring in a slew on new buyers, so we could see this stock well past the 24 dollar level. from 24 dollars on, the warrants will parallel the stock price dollar for dollar. In the rosiest scenario we have the stock at 50 and the warrants worth 38 on the second from the last day before exercise. theoretically on this day you could sell 1 warrant and convert 3. If you don't think this could happen check out what happened to INTEL warrants.