NEXL Message Board - Msg: 13316213

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Biotech / Medical : NEXL

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To: FreedomForAll who wrote (1657)	3/30/2000 3:17:00 PM
From: Mike C2	Read Replies (1) of 1704

1:4 Please explain why? I listened to the CC and must admit stupidity when it was stated that the uniform response by institutions to the size of the float (capital structure) was negative and that a reverse split could mend the situation: " The split is intended to rationalize the size of the Nexell capital structure, reducing shares outstanding from 73 million to about 18 million and public float from 54 million shares to approximately 13 million shares. " (from today's PR re. earnings) My understanding of small cap issues has always been that institutions want a guarantee of liquidity and that stocks with small numbers of shares outstanding are problematic. What am I missing here? This scenario seems tailor-made for institutions to soak up the float, file as 5% holders, and later force the company into being acquired for probably less than it might be worth further on down the road. I do not see the reverse split as negative in any way except psychologically, as Yahidiots so readily present themselves. This is not a company needing a higher stock price to maintain a listing. That board is like visiting a turkey farm. Mike C

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