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Microcap & Penny Stocks : Rande Is. . .FISHING. . [under $1.50] -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Miller who wrote (2617)	8/27/1999 12:00:00 PM
From: Rande Is	Read Replies (3) \| Respond to of 4766

Hi, Daniel. Back in school? Hope you are well. . . I am comfortable because my position started below .50. . . latest positions are closer to 1.00. . .in both PLCO and PLCOP. Company has turned around and no longer needs such financing deals. . . they make profits. . . but what I like more is that they make profits while growing the company. I visited one of their Toys International stores, while at The Block at Orange in California. I hear their store in the mall at the new Venetian Hotel in Las Vegas is the only mall store visible from the main casino. And they are opening about 10 more stores this year. . .in high profile malls. . . .like Mall of America, the world's largest. The stores are fun and geared toward allowing the kids to play with the toys BEFORE buying them. . . .there is literally a playground within the Toys International store model. . .with big screen video and large scale suspended train tracks. . .etc. Toys R Us are hurting. Yesterday they even lost their CEO. And the California Toys R Us have had trouble with Mattel. . . PlayCo's headquarters is in Calif. . . so are many stores. I think they are gaining market share there. . . as Wal-Mart is not the preferred place to shop for Californians. So I think they will continue seeing improving same store sales and earnings. I believe any convertibles that might be out there were probably converted when the common and preferred were under 50 cents. But I think the looming situation that you refer has more to do with the convertible preferred. Come Dec. 29 these will convert to common at a rate of 6 to 1. Likewise warrants convert to preferred. . . so they will convert into 6 common when they mature. I don't expect this dilution to have a terrible impact on the company. . . because by Dec. 29 I believe the company will be looking quite good. Also, within a few months, the company plans to spin off its online toy store. . . which will have all the top and popular names, but will also carry a full line of rare and antique dolls and toys. . . such as a 1959 Barbie doll or a 1962 GI Joe. . .etc. This will be a unique site and I expect it to help get the stock price going. Th main factor that has kept the PLCO price down, IMO, has been purely lack of awareness by investors. Many just have never looked into them. How do I know? Well, if anyone were to really look into the stock, they would be loaded up on preferred shares. Why? For the same reason I mentioned. . . . they convert at 6 common for 1 preferred. So if that conversion were to happen today, PLCO would have to be .21 cents to break even on the preferred. But with the momentum of ECommerce, coupled with the announcements of 10 store openings and the improving SSS and positive earnings in this OTCr. . . .I think the common will move to 3 dollars later this year. At that point, the preferred would have a value of 18 dollars. So if by the end of the year, the commons are at 3 bucks per share, I get 6 shares . . worth 18 dollars. Or to look at it another way. . by buying the preferred today at 1.25, I am getting the common on Dec. 29 at a rate of .21 per share. And that is a gamble I am very willing to take. Rande Is