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

To: maileg who wrote (2280)	6/2/1998 11:36:00 AM
From: Matt Burton	Read Replies (3) \| Respond to of 4142

Darci, Did you happen to ask whether buyers this week would get the split? It seems to me like they wouldn't, although the more-experienced are saying we would. Anyway, let me just throw my reasoning out onto the table. The thing we're waiting for is the ex-date. I just pulled this story about a split from the news wires: <<Cambrex sets 2-for-1 stock split EAST RUTHERFORD, N.J., May 28 (Reuters) - Directors of Cambrex Corp. authorized a two-for-one stock split, payable June 24, record June 10, the company said Thursday. The stock was trading at 54-15/16, up 15/16...yada yada yada>> Now, the date people will get the split--the ex-date--is June 24. June 10 is when people must own the stock by to get the split. In this case, the record date and the ex-date aren't the same, and I've never seen a case where they are. Gary was saying those who bought today WOULD get the split because the price has not yet adjusted. However, the price adjusts on the ex-date, which comes after the record date...in most cases. According to the MIDL release, the record date is May 29, which has passed. Is my reasoning concerning this completely flawed? Matt

To: maileg who wrote (2280)	6/2/1998 11:39:00 AM
From: Jay Lowe	Respond to of 4142

Darci ... you're right on all points. yesterday I posted my surprise that MIDLP had not dropped to the $15 range as would be expected on the big boards, when implementing a 3:2 split at $22. As it happens, Monday was not the ex-date for the split ... the paperwork for that is still in the mill and the actual x-date is currently unknown and may be as far as 9 days away. My reading is that the split is already in the price from the investor's point of view at least to some degree, since the news has been out for awhile. At some point in the future we can expect the MIDL price to undergo the split-adjustment. There may be enough demand so that we never see it open <$15 ... but it might. The split does not represent free shares ... it's simply an adjustment of the price and number of shares, that, in typical situations, is a wash. In our situation, however, if the split is already in the price as reflected by actual demand then we are 20% ahead of Friday.