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

To: Que who wrote (5469)	12/12/1997 12:22:00 PM
From: Que	Read Replies (1) \| Respond to of 10368

Support still strong at 5 5/8. But volume is so low..lots of limit sell orders on the warrant and they just aren't filling with this low volume. I would think the arbitrage play would really start about now; the stock is trading mostly up its range off of the strong support, while the warrant is trading mostly lower in the range, held down by all those asks. Up till now their have been too many speculators in the warrants, and too much reluctance to sell warrants, for a discount to open up. The arbitrage play is very important to the success of the call: it is the arbs who will be converting the bulk of the warrants that are held by those who can not exercise. Is this low volume a sign that the warrant supply is drying up? Or is it a sign of something more sinister? (such as hundreds of thousands of warrants waiting for an end of call rally, and the arbs holding out for a much larger discount.) I hope for the former, I fear the latter. There can't be too much of a discount if the stock does not rally a bit. At 5 1/2 the largest discount you could possibly expect is 1/4 pt. A late rally to 6 would guarrantee the success of the call... in the final 2 days the warrant could then trade at as much as 1/2 pt discount. L.L. & P.