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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper
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To: TJG who wrote (1798)5/31/1998 3:52:00 PM
From: Ga Bard  Read Replies (3) of 4142
 
Ok presently all MIDLP (including the shares coming int he split) will automatically convert in Oct 1998 unless a shareholder meeting and vote occurs to change that.

I for one hope the MIDLP never converts .. I feel the P is so valuable and I have a number of reasons. (plus why I believe the MIDLP should not convert Oct 1998)

1.) it is or has been for the most part the best AMSC buy for the long term investor.
2.) with such a small float I expect to see future forward splits/dividends if it does not convert. Which will be free shares to us.
3.) If we vote on the MIDLP to not convert at the shareholders meeting until say Oct 1999 think about it .. some folks are going to have a real problem because the warrants nor the common will be able to be used against the P to short with. Basically nothing can be used to short MIDLP but MIDLP shares again if it does not convert.
4.) If we hold the P and I mean hold strong this part of the trilogy is
going to dictate the price of the common and the warrants as it goes past them in valued price because of covering.. if a short position exist.
5.) at $2.00 common share price would / is a double out for the common where the P will be worth $70.00 for a triple out using the closing price of $23.00 and if they reduce the price Monday to $15.00 using the closing price vs the split then it will or can be a 6 bagger when it gets to its valued range. Not counting any covering.
6.) Holding the P with strong and I mean absolutely strong investors the P is where the stock price of the common is going to follow close. If there is a short position eventually the Preferred is going to go past the common thus making the common undervalued.
7.) Since it appears we have a mega portion of the issued shares
then any buying or attempt to take it down will result in more accumulation and salt thrown on the wound for anyone shorting it. Holding this small float strong a shorter will be scared to touch it fear of us buying more.
8.) Converted or not converted we have a voting power hehehe (go internet investors)
9.) If we do not convert MIDLP the common float will not get diluted by the 8.4M. (this is important) Now here is the kicker once the split goes through the DTC then they will know the short positions and thus make a call. This will cause anyone short on the P to have to cover. This is where the fun begins. No need to call for certificates because the DTC is going to handle all that from what I know once they send the DTC report to Arcon. If the conversion happens every broker MM short trader caught is going to hit the common the second it converts. Driving it to the floor. Why ... because 8.4M is about to be a mega dilution factor. Not to mention the day before they will short the P knowing people will be selling to avoid the conversion..
10.) there is more than 71 internet people that own this part of
the trilogy. PLUS the top 30 folks have at least over 1K and the
top 12 having very good position in UNDILUTED P ...

Now based on this logic I think everyone can see that the converting in Oct could be a problem where as not converting would be super benefical to the P shareholders. This is where the institutional buyers will come once this one fully awakens ...

Plus if the P does not convert the Warrants become the only way to cover. Hate it for them.

I could be wrong though

GB
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