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

To: Gary K. Best who wrote (5478)	12/12/1997 1:11:00 PM
From: Que	Read Replies (1) \| Respond to of 10368

Gary, there are 2 ways the unexercisables will be exercised. New money buys warrants to convert rather than the stock itself (saving the discount), and arbitragers who will sell the stock and but the warrants, pocketing the discount. They can only do this in so far as buyers support the stock sufficient to create a discount. Either way there has to be buyers to carry this off... late in the call it will be more difficult for investors to exercise, so they will favor the stock and arbs will increasingly be the purchasers of the warrants. Arbs perform a crucial role, after all we do want the warrants to be exercised do we not? Ultimately it is investors, taking advantage of this buying opportunity, that will carry off this warrant call. The $16.5M that the company is taking out of the market can only be filled with new money, the arbs perform a service in the mechanics of the exercise, but they take a bit out of the market themselves as a 'fee'. L.L. & P.