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

To: J R KARY who wrote (24280)	4/22/1999 11:56:00 AM
From: MeDroogies	Read Replies (1) \| Respond to of 213177

Can you elaborate on the "poison pill"? I wasn't even familiar with that....

To: J R KARY who wrote (24280)	4/22/1999 1:17:00 PM
From: Eric Yang	Read Replies (1) \| Respond to of 213177

JR, there are a lot of misconceptions about the convertible notes and how it affects AAPL. I've been researching into the convertible notes for over a year now, reading all the SEC filings, thinking about the mechanics behind how things will eventually work out. To double check my conclusions, I talked to some institutional traders and had someone consult a fund manager who specializes in convertible debentures. It's a complicated issue but I'll try to dissect it in two articles. The first article will go over the basics: where did these convertible notes come from and why they were issued, the exact terms of the agreement in simple terms...etc. The second article will talk about the conversion, analysis on how these notes have been affecting AAPL share price and what is likely to happen following conversion. I'll get at least one of these articles out by early next week. I can assure you that we won't see 22.6 million shares suddenly flood the market. The reason is that much of these notes (but not all) have already been shorted against over the past 2 years. Eric

To: J R KARY who wrote (24280)	4/22/1999 1:41:00 PM
From: HerbVic	Read Replies (2) \| Respond to of 213177

J R. I can't tell by your post exactly what you are thinking, but I think you may be laboring under a misconception. I'm no expert either, so if I'm wrong, then the matter is still open to discussion. It's my understanding that the 6 percent convertible subordinated debentures have a redemption price of $1,024 plus accrued and unpaid interest of $30.00 from December 1, 1998 to the redemption date. For each $1,000 principal amount the yield is $1,054. Alternatively, the holder may convert to Apple common stock at a conversion price of $29.205 per share of stock, yielding 34.2407 shares of AAPL for each $1000 of original investment. Ergo, at any share price above 30.78 bond holders will convert. Below that price they will redeem for their $1,054. HerbVic Edit: apple.com