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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Racso who wrote (24042)	4/15/1999 9:22:00 AM
From: Racso	Respond to of 213177

On the convertible debt, a few points to emphasize along the lines of Eric Yang's prior comments on this matter (message 24006): - It is clearly a message of confidence from AAPL which I believe how more to do with the expected future appreciation of the stock (which would make the conversion even more dilutive next year) than with interest rate savings of $40mm a year. - As Eric pointed out, convertible debt investors are normally equitey type holders which would look at the future merits of AAPL (with an improving and brighter future) before selling the stock at once. - The debt retirement, as Eric points out, would increase AAPL book value by $661MM with a strong positive impact on valuation. - The fear of massive stock sales related to the convertible debt redemption is, therefore, unwarranted. To put things in perspective average daily trading of AAPL has been around 4.7mm shares and the short interest as of the end of March was 17.3mm, that is 3.7 days of trading, quite a manageable number. If all the new shares resulting from the redemption would be sold (a highly unlikely scenario as also pointed out by Eric) the impact would be 19.3MM shares, i.e. it could be absorbed in a relatively short period of time.