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Microcap & Penny Stocks : MECHANICAL TECHNOLOGY (MKTY) -- Ignore unavailable to you. Want to Upgrade?

To: songw who wrote (419)	10/19/1999 9:55:00 PM
From: Tom Hua	Read Replies (1) \| Respond to of 542

what have i missed? songw, you have missed the most fundamental yet critical element, discount of PLUG intrinsic value in MKTY's share price. MKTY's core business is worth about $3. If you witnessed and/or played previous duals, it would become clear. Examples: MALL/UBID, DBCC/MKTW, DLIA/TURF, ZD/ZDZ, IDTC/NTOP, BRKT/ISPD, KLOC/SRCH, BKS/BNBN and NAVR/NETR (just last week). I might have left out a few others. I was in every single one of them, and history keeps repeating itself. BTW, one just surfaced today: MMWW/XPDR. Unlike MKTY/PLUG, MMWW shareholders will receive shares of XPDR tax free (1.2 shares per MMWW share). I'm long MMWW today but will switch to short after the expected run. Regards, Tom

To: songw who wrote (419)	10/19/1999 10:22:00 PM
From: Fisherman1	Respond to of 542

I am long and with you!! 1. If PLUG comes at 15 and only trades to 20 then your numbers are lower 2. Look at gefuelcell.com 3. Think that PLUG should have a market capital = to BLDP or 2.4 bill that is 50 for PLUG. Some traders think that MKTY will trade at a discount to PLUG I think it may happen for short periods but the management of PLUG , MKTY , FACT are very wall street knowledgeable and they could spin off MKTY then PLUG to the shareholders of MKTY and FACT.

To: songw who wrote (419)	10/19/1999 11:39:00 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 542

Tom is correct about the discount. I have played most of the back doors that Tom has referenced and the pattern is always the same. Per the June 30, 1999 Form 10-Q, MKTY had 10,822,116 shares outstanding. On July 9, 1999, they closed on a private placement and raised net proceeds of approximately $12.65 MM through the sale of 801,223 shares. That brings the total number of shares outstanding to 11,623,339. They need a total of $22.5 MM to exercise their option to purchase 3.0 MM shares of PLUG prior to or concurrent with the IPO. They have already announced that they have the financing in place so it is safe to assume that they have a commitment for approximately $10.0 MM. Assuming that MKTY exercises their option, they will own 13,704,315 shares of PLUG subsequent to the IPO. If the stock trades at $30 per share, a generous assumption, the shares are worth approximately $411.1 MM. Discount that number by 40% for tax and liquidity considerations, subtract the $10.0 MM in new debt, and you are left with approximately $236.7 MM. Divide this balance by the 11,623,339 shares that are outstanding and you have $20.36 per share. Add $3 for the remainder of MKTY and the stock is still overvalued at the current price. If PLUG trades at $40 per share, MKTY will have PLUG shares with a discounted value of $27.43 per MKTY share. Not a lot of upside at the current price.