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Non-Tech : Littlefield Corporation (LTFD) -- Ignore unavailable to you. Want to Upgrade?

To: Joe Master who wrote (5234)	12/8/1997 5:06:00 PM
From: Musya	Respond to of 10368

So if what you are saying about the MM action is true they are reducing the float of BNGOW shares and increasign the BNGO just a bit earlier than most of us thought. I personally am going to convert next week. I think this is when most of this will take place. What afect if any do you think this will have on the price of BNGOW over the next 7 trading days or so? Joe, very hard to tell. We do not know how many (if any) warrants were already converted by MMs during the arbitrage play. I have a feeling that they will be the onese who will convert majority of warrants. Reason? Too many people were caught off guard, and had/have to sell to convert some or get out altogether. Long term investors do not have to buy warrants and go though the trouble of conversion, they can simply buy shares. (The small discount that exists in warrants is smaller that the price change during one day, so individual investors cannot win much by using it.) The speculators/traders do not buy to convert, they buy for a short term gain (long or short). The individual traders cannot convert instantly, so they cannot take advantage of 1/8 of the point (at max) between the prices of the warrant and the share. Thus, the warrants that are now in the hands of traders will probably go to MM's for conversion. When individual investors who had warrants and can and want to converge are/will be doing so, I do not hink this will affect the price at all for the nearest 7 days at least. Why? If you are a long term investor, and you are converting your warrants now, you are looking for a LONG term scenario, and will intend to hold the shares beoynd the end of this mess (I mean Dec 22). So, you will not sell or buy either warrants or shares... Thus, I think, the price should not change be influenced by the act of conversion. On the other hand, this will lead to shortening supply of warrants, and if the MMs realy buying warrant and selling the converted shares to the public, then they will stop doing that. Their action (buy in the warrant market and sell in the shares market) are pushing in different direction, so the result should be about zero. The and of their action should not cause any difference (taken alone, which we can hardly do). I welcome any opinions on that. I realy never before watched a conversion process that close, and I do not think that my opinion ia anywhere close to be of an expert. Musya.