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Gold/Mining/Energy : KASTEN CHASE APPLIED RESEARCH. -- Ignore unavailable to you. Want to Upgrade?

To: Goldberry who wrote (892)	7/24/1999 12:12:00 PM
From: Ruby	Read Replies (1) \| Respond to of 1247

How could the train deal not happen? By the year 2001, not only should the stock be greater than 2.31, making conversion to common shares preferable, but 6.5 million expenditure or a slight dilution should not be a problem. Kasten has alreadt bought back 2 million shares. Once over 2 dollars per share the funds will step back in.

To: Goldberry who wrote (892)	7/24/1999 12:30:00 PM
From: Professor Dotcomm	Respond to of 1247

You are quite right - if the stock is 10% above $2.31 there will only be the share for share conversion. However if it is below at, say, $0.50, and KCA does not have the cash to redeem, then presumably KCA would have to do a treasury issue of about 10 million at $0.50 to raise the cash to redeem the pref. Like you I hope it won't come to this. However, the unconvinced don't like to see the principal shareholders in front of them for dividends or liquidation. Such people don't give a damn when the common is trading healthily higher but when it is down at thse levels, such investors tend to go somewhere else.