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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: Ga Bard who wrote (472)	5/24/1998 2:04:00 AM
From: Randi	Read Replies (1) \| Respond to of 4142

Gary, the 35K you mentioned that was given to ex-insiders - I guess that is what happened to the other 36K in the treasury stock? Randi

To: Ga Bard who wrote (472)	5/24/1998 3:17:00 AM
From: Kurt N	Read Replies (2) \| Respond to of 4142

Assuming your numbers are right, somebody is going to be hurting majorly (since they will have to pay the dividend, or have a short position equal to the dividend). I think it is a MM, but it could be an ex-insider that got a MM to short the preferred, figuring that they could use their restricted shares to cover later. Either way it doesn't matter, we get our dividends and somebody is short at least (62,000 - 54,000) 8,000 shares and has to pay a dividend of 4,000 shares. If I am reading this sentence from the press release correctly, the dividend will only be paid on the shares in the public float. It says nothing about a dividend being paid on restricted preferred stock that are supposed to be non-trading. biz.yahoo.com ... First, there will be a dividend on the publicly traded series A preferred stock (MIDLP). .... [edit: restricted shares are not publicly traded] 54K in public MIDLP float + 12K (ex-insider #1) + 23K (ex-insider #2) = 89K shares Treasury shares = 117,396 - 89,000 = 28,396. If the 50% dividend were also paid on the restricted shares, 89k * .5 = 44,500 (more shares than are available in the treasury). ... "This 50% stock dividend is being taken from existing treasury so no additional dilution to the existing shares will occur." ... If the 50% dividend is paid on the free trading public shares, 54k * .5 = 27k (and there is about ~28k in the treasury) .... From thread header: Share Count as best as I can figure out as of the last filing: Here are the totals for calculating fully diluted shares from the 8-K plus the last transaction for Arcon minus the returned shares of New Departure: 2,575,217 Common ( 1.6M insiders / 975,217 Free trading. ) 4,108,860 Dilution from Series A ( 117,396 ) 54K in MILDP Float 22,350,000 Dilution from Series B ( 149,000 issued to date ) ---------- 29,034,077 fully diluted common shares as of today MIDLP = preferred 'A' the other 63,396 are held by the company which are restricted for another year and 6 months before be able to convert. ..... Anyways with the companies fundamentals being more and more fully defined, anybody who is short would be smart to cover now while they still can [unless they are willing to lose the shirt of their back] as fundamentals/revenues/earnings drive the price up. Kurt