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Strategies & Market Trends : Value Investing

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To: Allen Furlan who wrote (17929)	10/26/2003 8:51:43 PM
From: rjm2	of 78895

Its happened to a number of stocks I have owned or followed. On one hand, its not good, on the other, if being public costs them $200k per year and not being public adds $200k to their profitibility then it might overcome the liquidity issue. But, how much liquidity do these small stocks have anyway ? Not much. Regarding MHCO, I added a little at just over $2 recently. (Very small amount and a small position for me) The CEO recently exercized an option at $2.625. I dont think he would do that if he thought the stock was going to $1 ! Also, the company bought a big block from a director with health problems for $3.50. MHCO is a value stock and they had a pretty good turnaround. The way I see it, they could sell the thing in a few years at $5-7 and that would be our liquidity. HGPI is trying to do it. EDIN did it. HURC tried and failed. ANII is doing it via a reverse split. There are more examples. It appears this is the risk of owning such small stocks. If management & the board are above board then I can see it as a positive for shareholders in the long run. Of course, thats just assuming that the company earns $200k more per year every year.

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