Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Markoff who wrote (1671)	5/19/1998 8:55:00 AM
From: Oscar	Respond to of 1757

Sweet deal is right. Let's just say someone owned 50,000 warrants. On Friday, those warrants were WAY out of the money -- it would have taken roughly a 75% gain in the value of the common for the warrants to be in the money, but I and others obviously felt they were a good deal because of the potential of the company. Suddenly, yesterday morning, with the reduction of the conversion price to 50 cents, the person holding those 50,000 warrants had a double whammy of a treat. First, the company came along and slipped $25,000 in his pocket! (Since the guy fully believed he would be spending the buck to convert, and now he only needs to spend half a buck). Second, the company rendered the warrants automatically in the money, which means they are likely to keep going up, because they are still the cheapest way to get into this hot company. (Equally important, the $25,000 that the company put in the guy's pocket came straight out of the company coffers, which is a pretty clear sign of the company's projected positive cash flow). What a country! Oscar

To: Alan Markoff who wrote (1671)	5/19/1998 9:17:00 AM
From: Charger	Respond to of 1757

Alan, was trying to follow your math. I am sure you are right but somehow it reads differently to me, so I'll put it in my own words. At the current ask of $20, if one buys two shares of MIDLP, the cost is $40. On May 29, 1998 we will receive a free share of MIDLP for those two shares. This makes the average cost of those 3 shares $13.33 per share (not an AMSC of $38). Then, in October, 1998 two of those shares become 70 shares of common. At today's ask of .8125 for common, we will have received $56.875 in value for a cost of only $26.66 (2 x av. cost of $13.33). Now lets say the value of the common by that time has risen to $1, or $2. Now we will have, on October 1, 1998 $70 or $140 for our cost of $26.66. We still have one share of P. So in October, 1999 this converts to another 35 shares of common and lets say that the common is worth $5 by then. Now we get an additional $175 for our cost of $13.33. Add a zero or two to the share count and it is pretty exciting. Add one digit to the share value and it goes through the roof. I am sharing in your excitement!! Charger