Rande Is. . .FISHING. . [under $1.50] Message Board

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Microcap & Penny Stocks : Rande Is. . .FISHING. . [under $1.50]

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To: rshelly who wrote (2627)	8/27/1999 5:26:00 PM
From: Rande Is	Read Replies (3) of 4766

rshelly, There is no question we are not talking about Hasbro here. This is a small retail chain that has been in business for a little over a decade. . . and has carved out a niche in the market. . . and has found a store model that is profitable. However, the company has several store models presently. . .some more profitable than others. . .and with the recent expansion, it is remarkable that they turned a profit for the fiscal year. But more importantly, they earned the right to continue with their expansion plans. . .which is what they are doing. Yes, there are all sorts of financing deals. . . but that is hardly unusual in tiny penny stocks. What is unusual is that this is not a scammy issue with nothing but 2 employees and a website or with some ridiculous invention. . . this is a 10+ year old respected retailer with bricks and mortar stores and a rather ambitious E-Commerce initiative. But then we are talking about having all this ready well before the Christmas season. . . . You know that the second quarter to a toy store is traditionally the worst, as this is a very seasonal business. . . so it doesn't bother me that this quarter is worse than the same one last year. . . now if the fourth quarter was lower, I would be alarmed. . . but that is not, nor was not the case. And as for the convertibles that were issued recently. . . [I believe only Series E and F are outstanding. . .all others were converted] . . .we are only talking 750k . . .for the purpose of expansion. That doesn't bother me much at all. . . . a company like this deserves to expand. . .that is what business is about. Now with all the floor/less convertible varieties that other companies have. . . I think PLCO made a pretty good deal with the F series. Look at what it will take for conversion: Each share of Series F Stock shall convert automatically on the occurrence of the earlier of either of the following events, without action on the part of the holder thereof: (i) two years from issuance or (ii) in the event the closing price per share of Common Stock has been at least $5.00 for a consecutive 30 day period. I don't see how the shareholder can lose with these terms. And like I said before. . . this is not HAS. . . it is a fledgling company that built a better store model than Toys R Us and is attracting loyal customers over time as it builds and expands its business. Sorry guys. . .I am still bullish. . .just haven't seen enough dirt to change my mind. But penny stocks are not for everyone. . .sometimes it takes an iron stomach. Rande Is

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