SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ga Bard who wrote (1916)6/1/1998 5:08:00 AM
From: John Algermissen  Read Replies (3) of 4142
 
Gary,

Follow me through on this one.

It seems to me that at some point in the future that the "P" needs to be redefined to being 5:1 or 10:1 common. A 35:1 conversion is fine for a stock selling for $2 or $3 because the equivalent "P" sells for only $70-$105. When MIDL gets to say $40 that would price the "P" at $1,400. Even though the intrinsic value of the "P" is there I think that we minimize the number of available buyers with such a high price. Most companies I know of split around $100-$150 for this very reason.

Now understand that I'm talking about the future and not the present but I believe the future will come upon us very fast and we should be prepared.

If it were decided to define a new "P" that converted at 10 shares of common for each new "P" then the current "P" holders could receive 3.5 of the new "P" for each share of their current "P".

This would benefit the current "P" holders in several ways:

1. The price of "P" would be low enough that there would be a larger pool of possible investors.
2. The number of outstanding shares would increase thereby making it more attractive to institutional investors.
3. Any dilution by the company by "creating" more "P" will have less of an effect because the base is so large.

Just some food for thought.

JohnA
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News