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

To: Captain Kirk who wrote (121987)	5/3/1999 7:22:00 PM
From: Venkie	Read Replies (4) \| Respond to of 176387

Monday May 3, 6:52 pm Eastern Time "Godfather of Soul" prepares trip to Wall Street By Aleksandrs Rozens NEW YORK, May 3 (Reuters) - James Brown, ''the Godfather of Soul'' whose music has been a fixture on American radio for three decades, is ready to bring his show to Wall Street, a move already taken by David Bowie and other musical stars. Under a transaction now being planned, investors will have the opportunity to buy bonds backed by the steady stream of music royalties that Brown generates from rhythm-and-blues classics such as ''Cold Sweat'' and ''I Got You (I Feel Good),'' market sources said. Those who buy the bonds will earn interest payments over a period of seven to 10 years, while Brown -- ''the Hardest Working Man in Show Business'' -- will take home a lump sum of close to $30 million, sources in the market said. The deal is being shopped around to institutional investors such as insurance companies -- a so-called private placement -- which is a standard practice for unique ''securitization'' deals that pool royalty payments. David Pullman -- one of the architects of the landmark David Bowie transaction -- confirmed that he had been retained by James Brown, but Pullman could not comment about the timing of the transaction. Participants familiar with the James Brown deal said the value of the music royalties backing the debt transaction was between $40 million and $50 million. The royalties are derived from radio play, use of music for films and television, as well as the performance of Brown's songs by other artists. This is not the first debt transaction pooling a musician's royalties. The trend was started by British rock and roll star David Bowie two years ago when he sold a $55 million debt offering backed by his music royalties. The pooling of regular payments to create a bond is a regular practice in the so-called mortgage-backed securities market, and it helps secure lower-cost financing for U.S. homeowners. Pools of home loans are sold by mortgage bankers with the help of Wall Street dealers to investors such as insurance companies, pension funds and money managers. This process has been applied to other consumer financial products such as credit cards as well as auto loans. While market players said a price level for the James Brown deal probably has not been set, insiders familiar with the transaction said the offering could be snapped up by investors at between 2 or 3 percentage points over the yield on 10-year U.S. Treasury notes -- or between 7.36 percent to 8.36 percent. The Treasury 10-year note was yielding 5.36 percent late Monday in the government bond market. While Pullman could not offer details about the James Brown deal, he said Brown may use the royalties to partake in the surging stock market, which raced to fresh highs on Monday, with the Dow Jones Industrial Average closing above 11,000 for the first time. ''He will be investing with top world-class money managers. He will reinvest money in the stock market,'' Pullman told Reuters, adding that James Brown's portfolio will be a diversified portfolio. ''We advise on what's done with the money,'' he said. -------------------------------------------------------------------------------- Related News Categories: funds, options, publishing, US Market News -------------------------------------------------------------------------------- Help -------------------------------------------------------------------------------- Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information.

To: Captain Kirk who wrote (121987)	5/3/1999 11:58:00 PM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

<<Kirk to Dell: Set a course for 55 at Maximum warp!>> I like your thinking....We'll be trucking on up towards $55 soon enough. New highs may be just beyond the earnings report. But wait until "the experts" conclude that DELL is unique in the industry and its growth rate deserves a premium price. We could get some upgrades in the next few weeks combined with a little short squeezing... Kirk, I hope you don't mind flying a few ANALysts and Fund Managers down to Austin for a tutorial on DELL <ggg>...Some of them seem to be real SLOW learners !! Lets hope they LISTEN to DELL's upcoming Conf. Call. Regards, Stockman Out...