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

To: Ga Bard who wrote (691)	5/26/1998 10:36:00 AM
From: David Parkinson	Read Replies (1) \| Respond to of 4142

Could someone post where the MM's now stand after the action from the morning. David

To: Ga Bard who wrote (691)	5/26/1998 10:37:00 AM
From: Mike Roberts	Read Replies (1) \| Respond to of 4142

Re:Arbitrage Won't the short sellers or arbitrators erase a bunch of the o/s warrants by purchasing them and then converting them to cover their position?

To: Ga Bard who wrote (691)	5/26/1998 10:41:00 AM
From: Islander	Read Replies (1) \| Respond to of 4142

If the dividend is to shareholders of record as of May 29..then this is the last day to acquire P for the dividend. If this is the case, why wouldn't the common trade DOWN tomorrow along with the P? Is this why the warrants are 'lagging' today?

To: Ga Bard who wrote (691)	5/26/1998 11:20:00 AM
From: Dave Gore	Read Replies (1) \| Respond to of 4142

Why the MIDLW warrants are undervalued right now... and why the "P" is even worse. The WARRANTS are the more timely play, IMO, right now. Re-read the press release from the other day: "The second matter is a reduction of the exercise price of the Midland warrants (MIDLW) from $1.00 to $0.50. This brings the exercise price of the warrants in line with the common. All other conditions concerning the warrants will not be effected." HERE IS THE KEY TO WHY THE WARRANTS ARE UNDERVALUED RIGHT NOW: "As soon as the registration statement registering the common stock underlying the warrants becomes effective, the warrants may be exercised." THE BIG QUESTION IS: When will we EXACTLY be able to convert the warrants to common for 50 cents? I have a call in to Daniel at Arcon. As soon as you can do this, the Warrants will automatically go up in value to 50 cents. The MM's are taking advantage right now, because they know it still technically costs us $1.00 to convert to 1 share of common....or perhaps there is not even any chance to convert right now at all, since we are in limbo with the warrants going down to 50 cents. So.... the warrants are a steal right here if the common holds anywhere close to where it is right now. REGARDING THE "P's": They are undervalued as well...notice they are up even far less than the MIDLW's today. WHY? They are suffering from a time lag. You do not have the ability to trade these guys as 35 shares of common until October 1, 1998. And the dividend on them does not become official until Oct. 1, 1999. Because these are not liquid investments right now, they are suffering on price. Now, as we get closer to Oct. 1, these will automatically go up in value, but many do not like to risk holding these for long, because they do not know where the common will be on October 1st. If you are a believer in this company long term, the "P"'s are pretty hot value, but IMO, the warrants are absolutely the best way to go, since we are much closer to recognizing FULL VALUE. Comments?