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Microcap & Penny Stocks : Rande Is. . .FISHING. . [under $1.50] -- Ignore unavailable to you. Want to Upgrade?

To: Ga Bard who wrote (2083)	5/11/1999 7:54:00 AM
From: Rande Is	Read Replies (3) \| Respond to of 4766

[PLCO] Yeah, I never could quite understand the logic of an arb play here. If you were to short the commons at 5 and go long prfrd at say 25, when the commons got to 2.50 you would be up 50 pct. . . but the longs would track the common and drop to say 12.50, so you would lose 50 pct. . . .a break even. And upon conversion the common would then drop sharply due to dilution making newly converted not worth what they were as pre-converted prfrds. It is a loser play. . .no gains, but still carries the risk of traders jumping out before you do. . . or company making stupid move. . .or other irregularities. . .for what? The possibility of a free 5 percent gain? Ridiculous. I'd rather just throw the money at A.T. and T. and wait a few months for bigger gains and less risk. I think the best play on PLCO's . . is to go long the same amount of shares of common and pfd, then when pfd catch up from their lagging, sell an equal amount of both. . .taking out all of original investment, leaving some free shares. . . unlike arb plays, removing ALL of original investment takes away 100 percent of risk. . . then upon conversion, the shares you have increase on pfds by 6:1. . . .so when the company re-lists on the Nasdaq, you've got plenty of shares. . . . and you paid nothing for them. . . .and should something happen to the contrary. . .you can't possibly lose, because your original investment has been out. I don't have to ask whether you agree. . .I've read the Bard's Trading System [BTS] webpage. <g> Rande Is