Replies to post #10124 on 141 Capital Inc (fka ONCP)

[songbirdia]

Hi, BB. Thanks for sharing your calculations.

One thing to remember is that at the moment the 200+% annual increase is based on only 1 month of trading. A more realistic track record will be developed as more months get reported. It could be higher or lower, but that annual result will change.

Best,

SB

[nicehit]

BB, the converted shares scenario is a great move, which I think most did here. But having some free trading shares is a good move also, if the Price rises.

IMO, I think we will get a slew of nooz while the shares are locked up. We will have lots of newcomers taking a chance buying at.0175 at the beginning, driving this up a bit in the short term (as you know, if news is real good and with a low float or no further dilution it can also move up very quick).

Thats why I kept a few to play with while the rest is locked up.

Lets see what happens it all depends on what they say going forward. Otherwise it’s all good.

[EBI]

BB, my friend, I will have to play against you on this one. I'm banking on a spike in PPS over the holding period....I rolled the dice and did not convert my shares. LOL GLTU

[PayDirt!]

So the break even point would be .2187 for those that converted and those that didn't. Is that rite??

[ThSeeker]

Several of us have come to the same conclusion as you. So I think you are right on. The math also says that for the tender offer to have been a mistake the post split PPS would have to exceed 10x the split price of .0175 or $.17 for it to have been a mistake. Since I keep some and converted some I will be happy to see it. (Not considering the 20% discount.)
I am glad they gave us the offer but I am disappointed they did not tell us (for sure) that a RS would be coming anyway. We all would have converted or at least most would. However I think they wanted to see how many took the offer and then establish the R/S ratio needed for the remaining common shares. Then reveal the R/S with ratio info. I was fairly pleased with 1:175. But all that is water under the bridge. We have a new start and should judge progress from here on out. Going to be plenty to talk about as we watch the performance over the next year. We also need the conversion to pref'd to be completed. Sooner the better.

[lasernat]

I think you have an error in your comparison, you used .175 for one and .0175 for the other, when you should have used .0175 for both

$0.0175 X .8 = $0.014 (our buy in PPS)

Now I take my $1000 and buy back the common shares.

$1000 / $0.014 = 71,428 common shares

71,428 common shares X $0.175 = $1,249.99


Ok, let's examine what the same person that had 1 million shares and did not convert to preferred shares. He sees a RS of his shares as well.

1,000,000 / 175 = 5,714 shares (after the RS)

5,714 X $0.0175 = $99.995

[funmaxus]

Here is another explanation.

For the shareholder who chose not to convert common shares to preferred shares:

Breakeven = 0.0175
To obtain same dollar return: 0.175
To obtain same percentage return: 0.117

First, a review of the offer:
http://www.141capital.com/pdfs/Offer_to_Exchange_Common_Stock_10-09-08.pdf

The terms of the offer are as follows. For each one thousand (1,000) shares of the Company’s Common Stock
tendered in the exchange you will receive one share of the Company’s Series B Preferred Stock. A Shareholder
must tender at least 1,000,000 shares of Common Stock to qualify to take part in this exchange offer

Illustrations of conversion rights:
(a) Assume you hold 1,000 shares of Series B Preferred Stock. Assume further that the market bid of the Common
Stock is $.50 per share. Because you have the right to purchase these shares at a 20% discount, your cost per
share on conversion is $.40. The number of shares of Common Stock which you can receive upon conversion will be
2,500 ($1,000 divided by $.40 per share).
(b) Assume you hold the same 1,000 shares of the Series B Preferred Stock. Assume further that the market bid of
the Common Stock is $0.05 per share. After your 20% discount, the number of shares of Common Stock which you
can rec$eive upon conversion will be 25,000 ($1,000 divided by $0.04 per shares).
================================================================================================================

The breakeven point for common sharehoders who chose not convert from commont to preferred will be: $0.0175

Quantity of 1,000,000 shares purchased at $0.0001

R/S at 175:1

1,000,000 / 175 = 5714

5714 x 0.0175 = 100 (rounded)
================================================================================================================

Now, to obtain the same equivalent dollar return as those who chose to convert the share
price will need to be: $0.175 for a 800.41% return

Common to Preferred:
Quantity: 1,000,000.00 shares x $0.0001 =$100.00
100.00
9.95 Broker Commission for sale
50.00 Broker certificate fee
5.00 Mailing cost
164.95 Total

Shareholder now has 1000 shares valued at $1.00 each or $1,000. A discount of 20% on share price when conversion from preferred to common.

Shareholder decides to sell. The value does not change, only the quantity. Rate of return will always be 500.21%
Therefore:

1000.00
-9.95
990.05

Calculating for rate of return:
( 990.05 - 164.95 ) / 164.95 = 500.21%


Common shareholder who chose not to convert from common to preferred will have to sell at $.175 in order
to obtain a similar dollar return:

Using the same data: 1,000,000 shares purchased at $0.0001
$100.00 Calculated as 1,000,000.00 x $0.0001
9.95 Broker Commission for sale
$109.95 Total

Common shares are then R/S at 175:1 therefore leaving 5714 shares, if 1,000,000 shares purchased.

5714 x $.175 = $999.95

$999.95
-9.95
990.00

( 990.00 - 109.95 ) / 109.95 = 800.41%

================================================================================================================
To obtain the same equivalent percentage rate of return, the share price will need
to be: $.1172

As explain previously, the maximum rate of return for the shareholder who chose to convert common to
preferred shares is 500.21%

In order to obtain a similar rate of return, based on the same 1,000,000 originally purchased at 0.0001
after R/S of 175:1, then,

5714 x .117 = $668.54

Given the same fee of $9.95, then:

( 668.54 - 109.95 ) / 109.95 = 498.99%

================================================================================================================

For Zecco, no commision transactions, given a $50.00 certificate fee and a $5.00 mail fee:
For shareholders that chose to convert from common to preferred: a 545.16% return
In order to obtain the same percentage rate of return, the shareprice will need to be .113
Comparison of non zecco to zecco: shareprice will need to be .109 for a 522.83% return

================================================================================================================

Oh the irony of it all, for all the longs!

a)Those who converted in full
b)Those who partially converted
c)Those who didn't convert at all

Now the board is going to be all mixed up and turned upside down as people are going to pump who never did
before and some will bash that never did before! And why? Because each chose a different conversion ratio!

Bobby + MC, et tu brut?

Of all the R/S this one is already turning out far more entertaining.

GO 141 CAPITAL!

JMO. GLTA.

[funmaxus]

boca_bobby, you are correct. My math contained an error, which was to say that I calculated the discount, but forgot to calculate post discount.

New table applicable for preferred share holders only, based upon 1M shares purchased at $0.0001 with the following fees: $9.95 commission, $50.00 cert fee, $5.00 mail fee, and post conversion $9,95 commission fee.
Total Gain after sale -commission = $1,240.05 %Gain 651.77%

Target Post Disc shares
0.0100 125,000
0.0150 83,333
0.0200 62,500
0.0250 50,000
0.0300 41,667
0.0350 35,714
0.0400 31,250
0.0450 27,778
0.0500 25,000
0.0550 22,727
0.0600 20,833
0.0650 19,231
0.0700 17,857
0.0750 16,667
0.0800 15,625
0.0850 14,706
0.0900 13,889
0.0950 13,158
0.1000 12,500
0.1050 11,905
0.1100 11,364
0.1150 10,870
0.1200 10,417
0.1250 10,000
0.1300 9,615
0.1350 9,259
0.1400 8,929
0.1450 8,621
0.1500 8,333
0.1550 8,065
0.1600 7,813
0.1650 7,576
0.1700 7,353
0.1750 7,143
0.1800 6,944
0.1850 6,757
0.1900 6,579
0.1950 6,410
0.2000 6,250
0.2050 6,098
0.2100 5,952
0.2150 5,814
0.2200 5,682
0.2250 5,556
0.2300 5,435
0.2350 5,319
0.2400 5,208
0.2450 5,102
0.2500 5,000
0.2550 4,902
0.2600 4,808
0.2650 4,717
0.2700 4,630
0.2750 4,545
0.2800 4,464
0.2850 4,386
0.2900 4,310
0.2950 4,237