Agree, Digiacomo's post was a good one.Nice use of the swimming...

Agree, Digiacomo's post was a good one.

Nice use of the swimming analogy.

Whilst I think the SP will go lower, at least for a period of time, I wasn't thinking quite as low as < 20c. Let's hope it doesn't drop too much.

It's a complicated situation, in that:-

1. a large number of shares (approx. *68M added to an existing 172M, or 40% extra) are about to become available to investors that have parked large amounts of money in them and been unable to access them. It's obvious that a lot will sell at least some of them, especially in the current market where opportunities abound (*note: add another 34M once options are converted over the next couple of years)

2. these are 'Sophisticated investors', and will be fully aware that the SP got to 70c (> 7 times), and should ultimately go higher, yet is currently 20c-25c (only 2 to 2.5 times). You would think / hope that the majority of these types of investors would hold onto a good proportion of their allocations to wait for the multi-multi-bag returns rather than the immediate quick-buck. If this is correct, it will create a drag on the SP each time it increases, as there will always be that next round of investors waiting to sell again

3. I'm not sure what the capital-gain implications would be, given that whilst the investment was made a year ago, they only receive their shares tomorrow. Do they need to wait another year for tax advantage (this only applies to personal investors with shares in their own names)

4. the current SP probably already has the share dilution factor built in, plus the anticipation of the initial SP drop when the conversion takes place. Therefore, the main drag on the SP should be the large number of sellers

5. the big question is: *** 'Are there many investors waiting to lap up all of the new shares that will be sold?' *** It may well be that many have sold in anticipation of tomorrow, waiting to get back in more cheaply. Will these and other opportunistic investors be able to match the selling pressure?

6. a couple of positive factors are that:
- there will now be a larger number of shares, so if the SP doesn't drop by to much it can increase the company's market capitalisation
- as mentioned in Monday's announcement, there will approximately $3.5M added to PLT's cash-flow as the options are converted (over the next 2 years)

Time will tell.

I've actually been wondering about how this would play out for the past year, being a convertible notes holder myself (the hold-onto-the-entire-holding-and-wait-for-multi-multi-bagger type). As I've disclosed, I've also been buying since then (from 60c half a year ago, all the way down to 24c a couple of weeks ago), as I still think it's a great investment for the relatively meagure SP.

I think it's safe to say we were all hoping the SP would be much higher rather than its current price (a year's low) when the conversion took place. That goes for both regular and convertible notes holders IMO. Perhaps it is good in a way that the SP has come right down again ... it might make many of the new holders think twice about dumping their new-found shares.

I hope I haven't rambled too much. Any other opinions would be most welcome, as always.

Cheers all (and good luck ... interesting times)