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Microcap & Penny Stocks : PLCO Internet collectables, childrens toys...etc -- Ignore unavailable to you. Want to Upgrade?

To: Pied Piper who wrote (737)	8/29/1999 3:05:00 PM
From: Condor	Respond to of 1296

Personally, I always saw the P's as the only play until Dec 30/99 for all the reasons you have been illustrating. Message 11029392

To: Pied Piper who wrote (737)	8/29/1999 3:42:00 PM
From: Pied Piper	Read Replies (1) \| Respond to of 1296

OK, OK, here I go again. I guess I really don't have a life! A scenario just popped into my head which may have been overlooked when the P and Ws were conceived. Remember that the company supposedly covers themselves with a clause about redeeming the warrants. Please follow this argument, which explains how they might have screwed themselves. Please tell me where this argument falls down. 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. I could hold my warrants until as late as late 2001. 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