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

To: xdll who wrote (1636)	5/30/1998 7:34:00 AM
From: Islander	Read Replies (1) \| Respond to of 4142

I don't see the difference between a 3:2 split and the original dividend declaration in terms of share accumulation. You still will benefit in preferred share number identically. Tax treatment is another story. I suppose the dividend is treated as income, whereas the split would not...., so the split would be better tax-wise (?...I am not from and do not live in the USA) Re the option analogy on the existing post record date preferreds, I do not see your opening at $15 Monday with the common where they are; as it closed Friday, the preferreds ex-split are still undervalued in terms of the October conversion. But who knows? I really don't see the call options analogy. Could you explain further?

To: xdll who wrote (1636)	5/30/1998 9:53:00 PM
From: Jay Lowe	Read Replies (1) \| Respond to of 4142

There are FOUR factors which will press downward on MIDLP in the near-term: 1. Monday is first ex-dividend trading day so the the perceived value will naturally drop to reflect the absence of pending dividend. 2. When the split is implemented, the price will automatically drop by 2/3 ... at the same time, you will have 3/2 shares = $0 change. 3. the 10% of clueless holders will see the adjustments and freak, thinking the drop "means" something ... selling will increase to some degree. 4. those who understand "P" have placed their bets already, so demand for "P" would be expected to be reduced. It's possible that the "P" will drop to less than the split-adjusted price ... this would be a nice buying opp on the "P"