To all... Second part is very important.
Everyone keeps talking about convertable stock dropping the
common price like it's going to 25 cents. Charles, you stated...
>
> Message from Charles S. Mitchell on Aug 24 1996 8:31PM EST
>
> If they bought 1,300,000 shares of preffered for $6,900,000
> it comes to $5.31 per share. If it has a 100 to 1 conversion
> rate to common stock that makes them be buying common stock
> at $.053 per share. A bargain don't you think. I think I
> need to be buying convertable preferred shares.
>
But they can't sell it today. So, we should see the stock price move
up when earnings begin to show. Then when the preferred begins to
convert, I don't believe it will all be converted at once. I know
some can only be sold at a max of 5% per month, taking 20 months.
And due to the tax issues I think that much of the preferred stock
will not get converted so soon.
It is in the best interest of the major stock holders to not run the
common into the ground. If they all bail when the preferred becomes
convertable, the stock price will CRASH! So, which one will be the
first to bail and leave his buddies holding worthless stock??? Would
you be the first, Bob??? I don't think that we will see this happen.
In a worst case scenario, we will see it begin with a small portion
being converted and then a gradual increase in the conversion. At
which time, if you don't like what you see, GET OUT!!! But until then,
I think that ISGI is a very good stock to be investing in.
The price is running in the .85 range! Buy it...It will go up! Then
keep your ear to the ground...as you should with all your companies
that you invest in. If things begin to move south, sell off! But in
the mean time, you have a great chance of a 2+ bagger before any
preferred can be converted.
Here's an idea...it might be a way to get a good inside look into
ISGI.
Wasn't there someone, maybe Seth...I think, that posted a message
saying that he lived just a few miles from ISGI, and that he might
just take a drive and check them out. Well if there is anyone that
could go by ISGI's home office and meet with Lents and others. NOT
just an investor relations person...BUT LENTS AND ASSOC! Sit down
and tell him our concerns and get some straight answers!
We could all put our heads together and come up with good intellegent
questions and even some suggestions! We could then put a list together
and our "Representative" could go get the answers. We could even pay
our "Representative" so that he or she would spend some time and
document things well. Maybe even follow up after we discuss the
answers that we get.
We could all chip in maybe...$10 bucks! If just the "IN"s chip in we
would be paying about $210 to our representative. And of course our
Rep would have much to gain from the meeting even without payment. And
some of the others might want to chip in something, to get to the
bottom of things.
This might even start a trend on these SI threads. Every thread
finding a "Rep" to do some personal "hands-on" research into the
company they are investing in. In fact I may have just come up with
a new business idea! Investigation work on a company with reports
to the stock holders. Of course, the seedy would get involved and
except payment from the company to plant wrong info...but you always
have to be on guard for the bad side of things.
Anyway, what does everyone think about getting our own "Rep" to go
talk with Lents and ISGI, and give us a report. Then possibly have
a follow-up to give him our feedback and get more answers.
Tell us if you think it's a good idea and wether you are willing to
chip in for the persons time and effort. After we find out what
everyone thinks about this and how much we can pay someone, we will
put together a list of questions and comments. And then set up a
meeting with Lents and Assoc.
Also, if anyone would be interested in being the "Rep" then let us
know. I will try and keep track of all of the details and post that
info also.
Come on group! Let's get this thread working like no other thread on
SI! This could really be great, getting to the bottom and seeing a
bit of an inside view could really help with these big investment decisions.
Mike Sawyer |
