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Microcap & Penny Stocks : MSU CORP-----MUCP -- Ignore unavailable to you. Want to Upgrade?

To: mark alan rosenberg who wrote (1086)	6/2/1998 7:53:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 6180

I would tend to agree with you Mark. But also we should keep in mind that ,if my analysis is correct, the bond-holders orginally had a $3 conversion rate and then attempted to "muscle" MSU into renegotiating the terms to a conversion rate of $1.50. It has been in the interest of these bondholders to keep the price low in order to strengthen their bargaining position and get a cheaper price. This may be part of the reason the stock has lagged since no news could be released during the "quiet period", but some shenanigans may have resulted in undervaluing the stock price. (Theory, shorting against those shares they hope to be able to convert later on with intent to deliver those shares.) Now with news once more being issued, the bondholders are losing the upper hand and MSU apparently has opted to release the backlog of news and either pay off the debt, carry it for a year or two, or opt for the situation where the conversion takes place at the original $3 price. Anyway you cut it, MSU appears to have once again taken the reins of command and master of their fate. As far as I'm concerned I hope they carry the debt and pay it off over the next several years. The diffence being that it might reduce earnings over the short term, but you avoid long-term dilution in the stock that will never disappear until the company buys back stock. And the AIME deal stands to create a tasty earning picture for MSU this quarter. Profitable for the first time in my recollection. Regards, Ron