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Gold/Mining/Energy : IBI CORP IBIC (CDN)

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To: Elizabeth A Rice who wrote (239)	3/16/1999 10:46:00 AM
From: george eberting	Read Replies (1) of 422

So, the 30,000,000 rights to Merrill Lynch cost them $30,000. If they exercise the rights at 10 rights plus $.04, then their cost for each share will be $.041. They have already made a (book) profit since shares are selling at +/- $.055. Sweet deal. But I suspect they weren't looking for a piddling $.014 per share markup. And, given that assumption, they must be looking for the release of excellent news which will drive share price substantially higher..... (Don't we all hope!!!!!) Or, another scenario. They may have purchased the rights with no intention at all of converting them. They are just inventory to be sold at a profit on the open market to others who intend to exercise them. If I had to guess between the two scenarios, I believe I would choose this one.

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