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

To: spy hard who wrote (2309)	6/2/1998 1:39:00 PM
From: Oscar	Respond to of 4142

Nope, I have more Ws today than I did yesterday, or last week. But don't get caught up in the ticks. I am holding this stock for a much bigger day than most arbitrageurs have the imagination to contemplate. Don't worry about me, and remember, everybody's gotta do what they gotta do. Oscar

To: spy hard who wrote (2309)	6/2/1998 1:48:00 PM
From: Dusty	Read Replies (2) \| Respond to of 4142

Spy, could you expound on your theory? The worst case scenario <as I understand it> is the warrants that are not converted get recalled and become worthless as for trading purposes. The person who buys without converting them looses a bit of money. But while they held them the warrants served much like insurance so to speak. However, if the buyer chose to pay the cost of conversion they would have a share of common. The warrant carries an option to convert, sell or forfeit. Is it possible that it was more profitable to sell the warrants and purchase the preferred? It sounds like it may have been? The warrants do bring additional money to the company and the short traders may continue to use them against the long term investors but in the end I don't see it making a difference in the price. JMO If I am wrong and am not seeing this clearly I want someone to clarify it. IF Arcon calls in the warrants those just become worthless; don't they? I am not totally clear on this point myself. Dusty :o)