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

To: Rande Is who wrote (2628)	8/28/1999 3:39:00 AM
From: rshelly	Respond to of 4766

thanks for your valued opinion. i sold my plcop shares at 3.oo during last runup and was thinking about buying back, but, plcop just sounds too good to be true

To: Rande Is who wrote (2628)	8/29/1999 6:16:00 PM
From: Pied Piper	Read Replies (1) \| Respond to of 4766

PLCO/PLCOP/PLCOW. I have a couple of questions, which I would really like your comments on. Currently, I hold PLCO and PLCOP. I am seriously thinking of dumping my PLCO to buy more PLCOP. The only thing I can see which might argue in favour of PLCO, is the upcoming IPO. Now I am sure they won't give free shares but they might give commons holders the right to purchase pre-IPO. I am not even sure if I would participate, given the fate of some recent IPOs. However, it might be a reason to hold on to commons. After analyzing all three options, I have come to the conclusion that PLCOP is, currently, the best of the three buys. However, I believe there is a scenario which would argue in favour of at least a small position in PLCOW. I would appreciate your comments on my logic. First we have to talk about PLCOP. There has been discussion, here and elsewhere, about the time period over which they would be converted to commons. My take is that this will happen very quickly. After December 29, I can get 6 PLCO for each PLCOP I hold. They will never trade for more than 6 times PLCO. Why would somebody pay more than, say $12, for PLCOP when they could get PLCO for $2? Therefore, if I still have PLCOP on December 29 I would convert them immediately. If the above is correct, and everybody holding PLCOP acts logically (here's where my argument may fall apart!) then shortly after the conversion date everybody holding PLCOP will get their commons. Now suppose that by this time PLCOP has never risen above $5, or has but not too much and/or for not too long. Then most people holding warrants would still have them. Now suppose PLCO starts to take off. Since there would be no PLCOP trading, the company would not be able to exercise the redemption option on the warrants. (My reading of the filing is that they can only exercise this option if PLCOP trades for 20 days above $8.50.) I could hold my warrants until a suitable opportunity arose, up to late 2002. Then the company would be obliged to sell me PLCOP at $5 a piece (in effect giving me PLCO at about $0.85 a piece), even if PLCO were trading at $100! Now that's a position I would love to be in! Please point out the flaws in this argument. Piper