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Microcap & Penny Stocks : Benz Energy (BZG.V) -- Ignore unavailable to you. Want to Upgrade?

To: Casey who wrote (113)	4/1/1999 9:00:00 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 272

Casey, Good question. One would think so based on the stock price activity. Before I took my huge position in this stock I confirmed that these convertibles are not floorless pursuant to their original terms. They are convertible at a fixed price of C$1.70. But there is always the possibility that the bonds could be renegotiated to in effect become floorless if in fact the debt is in the way of doing another financing. In any event we should find out what is really going on by the end of the month, given that the Encap loan is due then. However, when we find out it will likely be after-the-fact; if the bonds had been renegotiated to a lower conversion price it would have already been locked in by the time the announcement comes out. IMO the possibility of the above occurring has been fully discounted into the current stock price and therein is a big reason for the massive discount to break-up value. Folks who are looking to buy need to decide whether to wait this issue out, in which case you should be prepared to pay a significant premium over the current price, or buy with this uncertainty out there. Because of the massive cash flows about to start I believe that this uncertainty will be resolved much more favorably than the rest of the market believes at this point. From my 5 yrs. experience investing in the O&G microcaps, I have found that my biggest gains have come from investing in confusing and chaotic situations where there was substantial uncertainty.