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Technology Stocks : LUMM - Lumenon Innovative Lightwave Technology Inc. -- Ignore unavailable to you. Want to Upgrade?

To: VINCENT MALGAPO who wrote (31)	2/14/1999 12:11:00 PM
From: Daniel Miller	Read Replies (1) \| Respond to of 2484

Why would a large investment bank want to buy them out?

To: VINCENT MALGAPO who wrote (31)	2/14/1999 12:59:00 PM
From: Dr. Bob	Read Replies (2) \| Respond to of 2484

I do not think it is logical that an "investment bank would buy a large % of the float at $3". Perhaps there is someone negotiating to buy a large number of shares from management (which would not be from the float) or from another large shareholder, but this is still illogical to think it would occur at such a substantial premium to the market price. Usually when a big purchase like is being rumored occurs, it is because management needs more capital, and usually has to provide stock at a discount to the market price. If I were the rumored investor and wanted a million shares, I'd buy 50,000 a week at the market, rather than paying $3 a share for them. I might raise the price by doing so, but my average cost would still be way below $3. I don't want to downplay the stock; it looks like it has potential. I just think this particular rumor seems like it will turn out to be just hype - at least the $3/share part. Bob