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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: mark doubiago who wrote (12719)	2/11/1999 11:15:00 PM
From: Don Earl	Read Replies (1) \| Respond to of 14577

Hi Mark, The S-8 specifically states the 6+ million shares are for "employees". For a better picture of what "employees" pay for stock this should give you an idea: biz.yahoo.com Out of the authorized shares available this brings us up to 57.6 million. About 5 million shares are being held back against the convertible notes. Ken has been promised 5 million shares and he is only one "employee". They really are just about out of stock and that is why they want more. Also, come next October, they can start buying back the convertible notes with stock at 90% of the average selling price at that time. As for acquisitions, figure they will hold back at least 30 million shares for "employees" over the next few years. That would leave maybe 20 million shares for possible acquisitions. At current levels they would have to be looking at companies with a market cap of less than $160 million. That doesn't leave much if you consider that Intel took out Chips & Technologies for around $400 million. The S-8 makes it sound like they are fairly confident they will get the 50 million shares, so I assume they have enough proxies to push it through. I've gotten rid of most of my SIII with the exception of some that I have calls written against. That's how much I dislike this 50 million share business. With any luck, the stock will go up and up and up. You guys will all get rich, and some lucky winner will get to have the rest of my stock for $7.50. Regards, Don