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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: kimberley who wrote (26598)	11/15/1997 11:26:00 PM
From: Zeev Hed	Respond to of 35569

KIm: I have no idea what the 25% premium is, that part of the news release is absolutely incomprehensible to a simple Jewish Farnmer like me. The Draw down was taken from the release where they saidf they will draw down on the $10 MM by the end of the month. Usually drawing down mean start and use the money. Until they do conversion to stock the holders of that debt are probably getting a juicy interest rate, after all it is a convertible debt. As for discouraging shorting, anytime you have two securities with a differential potential valuation, arbitragors will step into the picture and eliminate this difference by buying the low valuation security (thus causing its price to rise) and selling short the high valuation security (and causing it to drop) and pocketing the difference. This until there is no longer a differential in valuation. There are some ominous cases when the conversion rate is variable where an invitation to print money by the the holders is present. I have no inducation that this is the case here. One thing I have always said about IPMCF management, they may not know how to get the gold out, but they are sure gifted when it concerns getting OPM. Zeev