ISGI ANYONE???? Message Board

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Microcap & Penny Stocks : ISGI ANYONE????

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To: Pamela Cooper who wrote (2550)	9/15/1996 2:17:00 AM
From: Ben Geh	of 2665

Pamela: I am not able to tell you whether you should dump your stock on Monday, but I can tell you that reverse splits almost always results in losses for the one holding the shares. However you'll find all these stocks already were doing badly in the first place with a history of falling revenues/earnings and stock prices and the reverse split is the last ditched futile attempt to save the company. Almost everyone can come up with countless horror stories and today any mention of a reverse split would immediately throw the terrified shareholder into an emotional wreck. On the other hand there are companies that perform well on the reverse splits. There are not many but here are some that I cut and paste from earlier postings in this thread. These are the well managed companies with good revenues/earnings growth and the splits are well planned strategies to increase shareholders value........... >>>>From: Mike Sawyer OAK was running at about $3 around May '93 when it reversed to around $20. And today it is in the $30's. But it does not have the high margin that TWT does. It has a float of about 13M with a total out of about 18M. They manufacture telecom equipment and devices. Coda is not real clear because of the lost ticker. But it looks like they had a small reverse in August of '95 and began to trade at $7. Then it went up to about $7.60 before being taken over in Feb '96. >>>>From: MARK SIMON Great turnaround for MDRX (drug industry) - in mid 1995 stock trading below $1, at that point management opted for a 1 - 14 reverse split in order to "attract more attention from Wall Street" The outstanding shares of 60 million became a float of 4.7 million. The stock closed friday at 39 3/4 .....Fundamentals is the KEY . Referenced this info thru The Motley Fool. >>>>From: Andrew Spurlin Ben : Check out COOPER CO. (COO) They had a reverse split 5/1 last year and the stock appreciated nicely after about 6-8 months They were in a good situation for a split,price was down do to legal problems etc..While earnings were climbing..It took alot of patientce but it worked out nicely for me !! I am hopefull this will too How the Preferred are effected is a concern for me especially after the first of the year when they can file to sell.. >>>>From: Glenn Olsen I used to play with OAK as it trade from 1 to 1 1/4. Got out before the reverse split. Went up a ton. Not all reverses are a negative. Glenn In ISGI's case, this tactical plan had long been planned and reported to the SEC via the SEC filings. These filings are no secret and is open to anyone despite the claim by some that this is a scam and these people even wanted to know whether there are any more hidden secrets. All they have to do is to read the 10Q's and 8K's and they'll find all the hidden secrets are there including the reverse splits. After the split the outstanding shares numbers 5.7 million, which is just too meager to attract any MM's manipulation. The float is just too tight for MM to play around. There are some who wants to convince you that Preferred's are not affected by the reversed split and that you should sell because they are going to cause dilution of anything up to 100 million shares. Makes the Preferred holders look more like lottery] players...whenever there's a forward split - cry in despair, whenever there's a reverse split - jump with joy. So there you are, as Glenn Olsen says from his own personal experience, "not all reverses are a negative". Ben

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