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Microcap & Penny Stocks : Leah Industries, Inc. (OTC-BB-LEAH) -- Ignore unavailable to you. Want to Upgrade?

To: Kelton who wrote (1087)	1/28/1999 4:45:00 PM
From: Dan O.	Read Replies (1) \| Respond to of 2153

Kelton and all: He is Converting not Selling. There are many reasons for converting preferred to common. For one, is that common can be used as collateral for margin or whatever. We do not know the terms of the preferred, so we can only guess as to his reasons. Please read and note the last sentence: Vladimir Alexander Gardt, President of SibMach, today has announced that he is converting his holdings of 6,000,000 shares of $10 Par Preferred (6% interest) stock into common stock on a one-for-one basis. The first 1,200,000 preferred shares will be converted immediately into 1,200,000 restricted common stock. The remaining preferred stock will be converted every other month over the next six months. Commenting on the conversion, Vladimir Gardt stated, ''I am anxious to convert my preferred stock into common stock because I am excited about the future of our company. The opportunities in these emerging markets are virtually unlimited and we are going to be positioned to make the most of it. I want to be a common stock shareholder in the years to come as these opportunities unfold.''

To: Kelton who wrote (1087)	1/28/1999 4:48:00 PM
From: Andrew H	Respond to of 2153

Kelton, where did you get the idea he was selling? As I understand it the stock for the SibMach deal is restricted for 2 years, so there will not be any selling. If you bother to check the terms of the SM agreement, LEAH bought 60% of SM for 12M shares, 6M of which were common and 6M of which were preferred. So if he were able to sell the shares at all, he would not have to convert to do so. Now the shares were selling for about 2 when the deal was signed: however for the purposes of the deal they were valued at 10. So I find it extremely unlikely that the President of SM would consider selling ANY of his LEAH stock at current prices (of course he can't anyway because they are restricted), since he knows what is coming. He has stated that SM will take in about 250M in revenues in 1999, BEFORE the Gazprom deal. Common sense would tell you he is not going to sell for .71.