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

To: upndn who wrote (5429)	12/11/1997 12:20:00 PM
From: SE	Read Replies (1) \| Respond to of 10368

For any of you who have not yet read the MVSI thread (I am at post 125 now) you should. It has remarkable similarities to this thread and this stock. I am anxiously awaiting the end of their call period to really see what happens over the week of 12/15 to that stock. In any event, we are lukcy in that we have a stock that has performed very similar to ours and the warrant call is very similar. You don't find a parallel situation in the market very often, and I believe we have found one. For all of you who don't yet know what you will do, wait. Read up on MVSI and if you believe it to be similar, wait until at least 12/17 and see what happens with MVSI after the call before deciding what you will do. We have a laboratory at our disposal...let's use it. GO PACK GO! -Scott

To: upndn who wrote (5429)	12/11/1997 12:24:00 PM
From: Crabbe	Respond to of 10368

Wash Sale Rule I got this email from Corey Smith this morning and I feel it is good news for a lot of us. Dear Rod, I do not have the ability to post to SI but thought you might want to share this with BNGO followers. I consulted my CPA re: wash sale rules affecting warrants + common stock. According to a 1956 Revenue Ruling, selling warrants at a loss and using the proceeds to buy common stock is not considered a wash sale transaction, due to the substantial difference in the nature of the securities. (Warrants are just like long term call options, and have different rights, trading characteristics, etc.) So, any BNGOW holders who have eaten a big paper loss in the last couple of weeks have the option of unloading the warrants at a loss, and using proceeds to buy BNGO common. At any given time, the number of shares of BNGO common you end up with is the same whether you sell enough warrants to convert the rest or simply sell them all and buy however many shares of BNGO you can. Obviously, the people who have enough cash to convert them all don't need to do this, but have it as an option. It really boils down to the # of shares of common you end up with and your total cost basis in those shares. Example: someone who bought 1000 warrants at 4 and has the cash to convert can either end up with 1000 BNGO at a cost basis of 9, or sell the warrants for 1, take the $1000, and own 167 BNGO at a basis of 6, plus add a $3000 tax loss to this year. Those who don't have the cash, however, have the option of selling them all and picking up the tax loss as the only benefit of the BNGOW "crash." The bottom line is all of us (me included) who now show a paper loss on BNGOW and do not have (or are not willing to borrow) the cash to convert them all, are going to have a lot fewer shares of common at the end of this than we hoped. Tough break, but might as well pick up a tax loss as compensation for the lesson. By the way, the wash sale rule would apply in the opposite direction. By selling BNGO at a loss and using proceeds to buy BNGOW, you would have a wash sale because the warrants are immediately convertible into the same security you just sold (BNGO common) at pretty much the exact same price (cost of BNGOW+$5, which is what you just sold the BNGO for, give or take a quarter point.) Just a little food for thought. There is still a week for the warrants/stock to react in a typical fashion (LACI) and rebound in anticipation of a bump after the warrant fiasco is behind us. I, for one, believe it will happen. Sorry so long, feel free to edit if you decide to post the information. Still Bullish on BNGO, Corey Smith Rod