Arcon Energy (MIDL Presently) The Ultimate Sleeper Message Board

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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper

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To: Dusty who wrote (1950)	6/1/1998 9:49:00 AM
From: Crossy	Read Replies (2) of 4142

Dusty, well this is a complciated area "VALUTAION" is what is here - every participant here has ASSUMPTIONS underlying the strategies of holders of long/short positions of each of the trilogy. The position that each holder has in stocks of the trilogy further influences his stance. Since I have MIDLW (which will be converted into MIDL by me when MIDL is near $2) and MIDLP my goal is to maximize my return of my investment. The discount the MIDLP is trading is fact, since it should be trading near $40 right now if it were convertible right now into MIDL common. It trades at $24 however, which is almost a 50% discount. How to narrow the discount ? I mean thru conversion option. This should narrow the spread between 35*MIDL and MIDLP in an instant. I say option not automaic because I too want future forward split on my "P" postiion. I don't fear of arbitraging, in fact by converting You can realize the difference Yourself once You want to sell. This enhances the value of my "P" and that determines my stance. Makes sense to wait til some preconditions are there. Proof will be that: I hereby argue that IF - as Gary wants to push it thru the AGM - the conversion date is further pushed ahead, the DISCOUNT I speak of will WIDEN not narrow. Sure, the common might get to $2 or more. But the preferred will not be at $70 but at a figure much less. This is my logic and every option trader will know what I mean. (got some experience with spread-positions on techstock options myself) ok, everything else is argumentation and the logic is presented and outlined. We will see in the end how the discount will evolve. Believe me I neither want a sell wave of 8 million to hit the MIDL-common. I want however definitely enhance the value of my investment... best regards CROSSY

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