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

To: George Burdell who wrote (1724)	5/23/1998 6:26:00 PM
From: Ga Bard	Read Replies (1) \| Respond to of 1757

OH OH OH ok ... I agree the warrants is the play but the coughing up the .50 is still better than the $1.00 ... Also the recall will happen one day. So people with warrants need to be considering just how they are going to capitalize on the investment and hold for the long term unless thye are just going to sell out and move on to the next one. I understand now. You can double out on the warrants quicker than any of the trilogy and the exercising you delay until you are sure this stock has what it needs and defines itself. I see now. GB

To: George Burdell who wrote (1724)	5/23/1998 7:03:00 PM
From: Kurt N	Read Replies (1) \| Respond to of 1757

I guess this is all a matter of perspective. "It's a floor wax. No, it's a desert topping. It's both." Goal: Own ~5000 shares of MIDL. Preferred -------------------------------------------- Buy: 96 shares of MIDLP @ $30.00 After dividend, 96 * 1.5 = 144 shares MIDLP 144 shares MIDLP * 35 common/MIDLP = 5040 Cost/share = 96 * 30 / 5040 = .571 Total initial investment: $2880 Warrants buying/exercising --------------------------- Buy: 5040 warrants @ $.45 Exercise warrants: 5040 @ .50 = $2520 Cost/share = (5040.45 + 5040.50) / 5040 = .95 Total initial investment: $2268 Warrants buying/selling enough to exercising rest -------------------------------------------------- Assume common price is $5. Warrant value should be $4.50. It may be more or less. $2520 (to exercise 5040 warrants) / $4.50 = 560 Buy 5040+560 (5600) warrants at $.45, Sell 560 warrants to come up with the exercise for the 5040 Cost/share (warrant at 4.50) = (5600.45) / 5040 = .50 Total initial investment: 5600 .45 = $2520 Realize that the warrants are currently .08 undervalued from the common. Assuming the warrants were at $.53, your average cost would be $.58. Also you will have capitol gains on the profits on the warrants you sold. Average cost on the preferred has the advantage of being fixed, and additional dividend potential in the future. Kurt