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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (33776)	8/27/1998 4:16:00 AM
From: d:oug	Read Replies (1) \| Respond to of 35569

Bill, thanks for the post, and please let me know if I understand what you wrote. The following is from your post. << IPM has lost it's value. >> Paper wise, as in a ipmcf share trades at 0.01, this is true. But has the company IPM lost its value ? If IPM made a product that became obsolete, then yes. If Black Rock dirt contains precious metals that can be extracted in the near future of a couple years, even at todays price of gold, then I say the value of IPM has not changed since the desert dirts were identified for precious metals mining. The value, as all you know, of IPM, is amount of good dirt got, profit margin, price of gold. << from chapter 11 by IPM will be a fresh investment situation. >> True, but lets assume all current ipmcf shareholders will only sell and never buy anymore, and lets see where we can go from here. << any PP will dilute existing SH enormously >> Total dilution is what ipmcf shareholders currently are looking at with chapter 11 to chapter 7 = ipmcf = 0.00, and can't get any more diluted than zero. So already at wrost place, and any movement thru a PP is better than current, even "enormously" diluted. << will likely happen is a 10:1 consolidation >> Does this mean rather than IPM issuing 10 new ipmcf shares for each currently being held, that my broker will tell me my 110,000 shares of ipmcf are now 11,000 ? Either way I really don't understand this stuff, but now is not the time to since first let it happen and thusly I hope I get the chance to have this problem to understand. << followed by the PP, followed by a rapid run up to $5 >> If this is true, along with the 10:1, then someone with an average cost per share of $1.00 would, if sold at $5, get 50 cents on each dollar invested, as a return. Would need an average of 1/2 to get all investment returned. For one at the highest average possible, the $15 I think, rather than sell all at $5 and loose 97 cents on the dollar, the return of 3 cents on the dollar is not much different than trying to sell all at the current price, so if looking at the current chapter 11 as a forced "never sell ever", then hold for a couple years and maby the dream riches story will put stock at $150 and you get the initial back. Doug