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Technology Stocks : Frontier - FRO -- Ignore unavailable to you. Want to Upgrade?

To: zebraspot who wrote (194)	3/19/1999 1:32:00 PM
From: Ron Sirch	Read Replies (1) \| Respond to of 245

<< I think the biggest risk in the deal now is market risk.>> I agree that we are in a potentially rewarding BUT risky market. My first concern is capital preservation and that's why I like the FRO play. GBLX has the potential to move 40% from here but FRO will probably be limited to 15-20%. However, the risk in FRO is close to zero, even if the market tanks. This deal will close, IMO. It's a perfect fit for for GBLX and GBLX CEO Bob Annunziata loves it. He's not going to let it go even if he has to come up with more shares in the unlikely event GBLX falls below the low end of the collar at $34.56. Under the terms of the agreement FRO can walk below that price but GBLX can save the deal by coming up with stock or cash to get FRO's value to $62. Clearly that would happen. Sounds like I love the deal too. I do! FRO now $54 7/8 + 1 GBLX now 49 1/4 +1 1/4