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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: jimthebody who wrote (29652)	11/2/2002 12:52:56 AM
From: peter michaelson	Read Replies (1) \| Respond to of 34075

Jim: Looks to me that you might have spent that $15,000 on a Golden Eagle debenture that converts to half a million shares in 2 months time. That's right, 3 cents per share. That's what Pfeffer just got, isn't it? "At any time on or after December 31, 2002, Mr. Pfeffer may convert principal and accrued interest, in whole or in part,into Common Stock, at a rate of the dollar amount to be converted divided by $.03." One might believe then that MYNG shares are actually worth 3 cents per share. That appears to be the best deal management could get for the shares. After all, if that is not the case, then GE would have done better to sell shares at a higher price and then repay the Pfeffer debt. Let's look at this another way. The debenture will be convertible into 104,646,695 shares shares on December 31, 2002. On June 30, MYNG reported 237,556,623 shares of common stock outstanding. That would give a total of 342 million shares, of which the debentures had converted into 31%. The debentures are worth about $3,150,000 on December 31, after accruing some additional interest. That $3.2 million represents 31% of the market value of the stock. Therefore 100% of the stock today and on December 31 is worth $10.5 million. $10.5 million divided by the 237.5 million shares outstanding yields an appropriate stock price of under 4.5 cents. Do you guys see that 1/3 of the company has been sold for $3 million? Wouldn't you all have been happy to buy lots of shares at 3 cents, like Mr. Pfeffer seems to have? Does this seem fair? Doesn't it make you a bit suspicious that the company is not run for the benefit of the shareholders? Do you know who Mr. Pfeffer is, or who he might be related to, that allowed him to receive this great deal? I may be completely barking up the wrong tree, as I 'm not familiar with the history of Mr. Pfeffer's role or financings. At the moment though, I am shocked by what looks like a real rip-off deal. Please do correct me if I am misinterpreting. Peter