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

To: Crossy who wrote (1955)	6/1/1998 10:00:00 AM
From: The Devil Dog	Read Replies (2) \| Respond to of 4142

Why is it you think that the pref will not appreciate to $70. This is short term antics by MM. One of the most extreme eg. of not converting is Berkshire Hathaways shares. Plenty of Institutional buy there A's at $45,000 - B's at $1,500. Its all relative once they stabilize and are mfg. the 3 will align themselves accordingly. Regards WB

To: Crossy who wrote (1955)	6/1/1998 10:25:00 AM
From: Ga Bard	Read Replies (1) \| Respond to of 4142

The position that each holder has in stocks of the trilogy further influences his stance. Yep that is for sure. Since I have MIDLW (which will be converted into MIDL by me when MIDL is near $2) and MIDLP my goal is to maximize my return of my investment. The discount the MIDLP is trading is fact, since it should be trading near $40 right now if it were convertible right now into MIDL common. well ok let see here you are hold the warrants and do want to exercise till $2.00. hmmm well you got a long wait there ... Arbitrage is going to kill you but since you are not worried then I guess you will patient. Till the warrants are exercised there is going to be no float reduction so it is going to take accumulating every single warrant out there before it does move. MMs know this. Plus they are going to knock the P down too. Till you begin to see the factors of trading it is going to be a long road. It trades at $24 however, which is almost a 50% discount. How to narrow the discount ? I mean thru conversion option. This should narrow the spread between 35*MIDL and MIDLP in an instant. I say option not automaic because I too want future forward split on my "P" postiion. Well that is an idea but let that conversion date get close to good delivery and you will see arbitrage even worst than the warrants. I do not see how you can continually think people that make a living at this game play off the logic you are conveying. Oh well you shall learn. Heck it took me loosing 14K to realize not to underestimate the power of shorting. I don't fear of arbitraging, in fact by converting You can realize the difference Yourself once You want to sell. This enhances the value of my "P" and that determines my stance. Makes sense to wait til some preconditions are there. Proof will be that: I hereby argue that IF - as Gary wants to push it thru the AGM - the conversion date is further pushed ahead, the DISCOUNT I speak of will WIDEN not narrow. Sure, the common might get to $2 or more. But the preferred will not be at $70 but at a figure much less. This is my logic and every option trader will know what I mean. (got some experience with spread-positions on techstock options myself) I disagree ... I know from your post you are an option trader without a doubt. I do not though see that since you are an option trader that the arbitrage is not an important point to you. I am confused with your logic here on this stock. Extremely confused. Like I said it takes a while to know the logic of people. Anyway the P hopefully will be extended an then only worry about the warrants. Just going to take a little time. GB ok, everything else is argumentation and the logic is presented and outlined. We will see in the end how the discount will evolve. Believe me I neither want a sell wave of 8 million to hit the MIDL-common. I want however definitely enhance the value of my investment...