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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?


To: Donald Wennerstrom who wrote (2385)1/22/1999 11:28:00 PM
From: ET  Read Replies (1) | Respond to of 2754
 
IMO......yieldup threw in the towel in.....

...they sold out to fsii because they know their cooked, with the upcoming lawsuit from infringing on CFMT's product..... this is good for cfmt...fsii has more money.......



To: Donald Wennerstrom who wrote (2385)1/23/1999 4:58:00 AM
From: rairden  Read Replies (1) | Respond to of 2754
 
Arbitrage opportunity?

If I buy 5000 shares of YILD on Monday morning at 2 1/4,
that would cost me $11280 (including commission).

Then by late April or early May I'd receive 73.13 cents times
5000 equals $3656.50, plus 0.1567 times 5000 equals 783.5 shares
of FSII, valued today at 783.5 x 13.6875 = $10724.15.
The sum is $14380.65.

That's a $3100 premium, or a 27 percent return on my original
$11280 investment in a mere 3 or 3.5 months.

Something is wrong here, like maybe the probability of this
acquisition is lower than we think. Or maybe it's late and I'm
not understanding the press release. Then again, YILD did trade
as high as 3 1/4 on Friday, so I guess the jury is still out.