Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Anthony@Pacific who wrote (17652)	3/5/1999 5:06:00 PM
From: StockHawk	Read Replies (2) of 122087

Anthony, I know you hate longs, but this one might interest you. It is either a screaming buy or a scam - and if it is a scam I figure you can spot it. It involves a convertable preferred issue that does not seem to be selling anywhere near its conversion price. The common stock, PLCO traded at $2 recently. The preferred stock - PLCOP will be covertable to six shares of PLCO beginning 12/99. So, if PLCO is $2 and PLCOP is good for six shares of PLCO it would seem reasonable that PLCOP would trade for something near $12. But it's not. While PLCO was being quoted at $2, PLCOP was being quoted at $1.5 I called the CFO - James Frakes - and he said he had no explanation why the preferred traded for less than the common. Said it didn't make sense. It would seem that PLCOP is a great buy. What do you think? Background: PLCO is a toy store co. with 25 stores on the West Coast. They have had problems in the past, lost their NASDAQ listing and are now BB, but they seem to be moving in the right direction - For the 9 months ended 12/31/98 they reported sales of $27 mil., up 53% from the prior year. 3rd Q. sales were up 41% over the prior year with same store sales improving 12%. They are opening more stores and they just announced a web site to sell excess inventory at wholesale prices. They should be announcing the opening of a more significant web site to sell all their in-store products within a month. They feature upscale toys, electronic playthings, educational toys, collectable toys - which they state are higher margin than mass market toys. Float is 2.2 mil. Any insights will be much appreciated. Thanks, Tony. StockHawk

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