*  Holding LNOP or XLA? 

skymac2 

12/4/00 17:23 

Similar to my post on Cache & Carry, what if another company buys MII from XLA or EZchip from LNOP?

Look what happened to SPCT after CREE bought the UltraRF division of SPCT. SPCT got hammered. Why? Because the only reason investors were holding SPCT was UltraRF. Therefore, if MII gets bought (or even goes public?), wouldn't we possibly see the same negative effect on XLA shares? Same with LNOP and EZchip? Please advise. Thanks.

Not long/short XLA or LNOP

*  RE: Holding LNOP or XLA? 

Denny 

12/4/00 18:11 

You have seen the light! Pun intended!

If Mirror Image was a division of XLA and if EZ-Chip was a division of
LNOP, then it would make sense to buy XLA and LNOP because management
could not sell the division without benefitting the shreholders. Not so
when the companies in question are just "investments" as is the case
with both of these. I would love to hear what JeffSt has to say about
this!

Denny
"Demand creates queues.
Supply gets rid of them."
Software Times

*  RE: Holding LNOP or XLA? 

sb 

12/4/00 19:20 

Vik brothers have a huge stake in XLA. Hard to believe XLA
shareholders will be left without any stake in MI.
Comments ?

*  RE: Holding LNOP or XLA? 

Denny 

12/4/00 19:53 

 
Will they lose any sleep if you lose your money? Somehow, I don't think
so! There is a good reason for the old saw: "A fool and his money are
soon parted." I mean no offense but I think it is a bad risk to rely
on other people's honesty. Not only that, if XLA were a US corporation
you might go after them legally. Being off shore in the Cayman Islands,
they are a lot further away from the long arm of the law. And, as far
as I understand, their reporting requirements are nowhere nearly as
strict as US based corporations. It all boils down to this: Can't you
find a place for your money where you don't have these risk that you
don't really need. I can't believe that XLA promises a better future
than all US based companies, with or without Mirror Image.

Denny
"Demand creates queues.
Supply gets rid of them."
Software Times

*  LNOP, XLA 

jeffst 

12/4/00 21:14 

Denny--I agree that as a general principle it is better to own
directly the entity that has the sizzle. There are plenty of exciting
investments on Page 8 and elsewhere that don't have this element of
nervewracking drama that you get with XLA and LNOP. I made this point
during the Q&A at the Charleson Investor Conference. There is, I
think, some comfort to be had in the fact that your interests in XLA
and LNOP are --to some extent, anyway--aligned with the management
insiders. (As of February, for example, Eli Fruchter, the CEO of both
LNOP and EZChip, owned 11% of LNOP.)That said, I agree with your
fundamental premise.
Jeff