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: Crossy who wrote (1824)	5/31/1998 6:14:00 PM
From: Dusty	Read Replies (1) \| Respond to of 4142

Crossy, A preferred share of stock ALWAYS has been and ALWAYS will be the choice of astute investors. It is the difference between owning a Caddie or a V.W. There are rights and perks that are afforded Preferred shareholders that are not available to the common stock holder. Forget all about the conversion of 1:35 it is just a yard stick anyway. JMO This is my reason for NEVER converting mine. A Preferred share can always be traded on it's own. There are many more reasons NOT to convert than there are for converting, IMHO Dusty :o)

To: Crossy who wrote (1824)	5/31/1998 7:48:00 PM
From: Kurt N	Read Replies (4) \| Respond to of 4142

You need to look at the bigger picture, the relationship between MIDLW/MIDL and MIDL/MIDLP, and the inter-relationship beween the 2 relationships. Having the preferred not convert until the following 3 conditions are met is in MIDLW/MIDL/MIDLP holders best interests. #1: Trading on a listed exchange (Nasdaq/AMEX/NYSE) #2: Institutional investors holding MIDLP and some MIDL (or just MIDLP only), #3: All the warrants have been exercised. #2 is the important one and we are about 6 months away (hopefully sooner, but within 6 months it should become apparent. look at the volume...look at the volume...look at the price go up....) Remember what is currently going on with the common and warrants by the MM's/arbitragers. Person A buys MIDL, MM shorts it/buys warrant as protection/pockets difference/hopes that they don't have to exercise the warrant/etc. Remember number of MIDL shares outstanding is extremely small. This game will eventually stop once the warrants are forced to be exercised. (or at least the profit incentive for shorting no longer exists, and if they used the warrant as a hedge and exercise it in effect their short position is eliminated, if not they are short). Also the maxinum number of MIDL that can be legally shorted is the number of MIDL outstanding. Outstanding MIDLW > Outstanding MIDL. If the preferred were to convert before the exercising (voluntary/force convert after $2.50 close bid for 10 days in a row and 30 days notice) of all MIDLW there would be more MIDL shares that they could short against to play this arbitrage game. OK. Let's assume the warrant conversion is done and the float is ~10 million (which is still small enough), choices are either MIDL or MIDLP. The bigger the float, the more buying it takes to move the price up. Without the MIDLP in the float the common should move up faster (benefits MIDL and MIDLW exercisers). Since the common moves up faster and the MIDLP is based upon the common, it will move up faster as well. Now, suppose that the MIDLP optionally converts in Oct 99 earliest (assuming sharholder approval). Warrants are gone, but the MIDL was $2.50+ for 90 days before the 30 day recall notice. Smaller float helped bring common price quicker, MIDLP price goes up likewise, and institutional investors are involved. Having the MIDLP convert into MIDL will not be a problem then. Also, I imagine another dividend would be given to MIDLP holders in 1999. Preferrred stock gets precedence over common for dividends (ie. a dividend may be paid on the preferred and not on the common, but if a dividend is paid on the common it must be paid on the preferred). Let's say it is another dividend implemented as a forward-split, by waiting 1 more year we own that many more shares of a $50+ stock by then. Ooh, almost forget about the shorts in MIDLP. If the MIDLP doesn't convert to MIDL then the only way to cover is with MIDLP. Sucks to be them. Kurt

To: Crossy who wrote (1824)	5/31/1998 7:51:00 PM
From: Ga Bard	Read Replies (1) \| Respond to of 4142

Crossy Crossy Crossy ... you can put the conversion date off with shareholder vote year after year after year. NOTHING says it has to convert. Also you will see the P at a much much higher price range in the future than you will the common. I grant you you beter have a mega bunch of ametuer novices with a BUNCH of shares if you think for one second the savvy long termers than have been accumulating the P for 9 months are going to let their stock even have a chance at converting. There is NO WAY I want to see the common get flooded with 8.4M which is the dilution factor of the P much less probabluy 4 times that amount in the future. I am hoping for more and more free stock to come to the P with each dividend and split that I feel is going to have to happen. If you want to sell the common then sell the P same difference. As far as your logic to arbitrage. I doubt you see that to abitrage aginst the P is total absurd. You can't buy and sell enough P to do the abitrage with a no risk factor. If you try and the P gets changed for another year ... UH OH you have to cover the short position on the common. HOWEVER, for and off shore shorter or someone arbitraging an option conversion would be IDEAL that would set up the no risk factor. Now come on think before you decide to post stuff that makes no sense. You ideas and opinions actually would establish arbitrage in my limited knowledge and opinion.. GB