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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (4294)	3/22/1999 10:28:00 PM
From: SE	Read Replies (1) \| Respond to of 4697

If the stock does not trade above 6 7/8 prior to expiration there is no arbitrage. It would be cheaper to buy the shares open market than to buy the rights. Makes no sense to short shares and buy rights as with a warrant call, cause normal warrant calls require a price substantially above the call price which gives the arbs the game to play. Here there is no incentive to try to play a game, unless it is to get the stock above 6 7/8 and then buy the rights and short the stock. In any event, I think the stock is pegged at 6 7/8 until 4/13. Get's above that, feel free to sell as you will be able to buy it lower right near the end of the call. I really think this is quite different than a warrant call in the final analysis..... -Scott