Centura Software Corporation (NASDAQ:CNTR) Message Board

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Microcap & Penny Stocks : Centura Software Corporation (NASDAQ:CNTR)

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To: Jack M. Moriss who wrote (2235)	2/2/1998 1:18:00 AM
From: Robert Williams	Read Replies (3) of 2428

Jack & Max90, There are a number of companies that have executed a reverse split when it was appropriate and have thereafter had substantial share price appreciation. Medicis (MDRX) is a solid example. Appx. 2+ years ago Medicis was at .25 a share. Upon execution of their business plan they reached profitability and doubled to .50 a share. Shortly thereafter they performed a 14 for 1 reverse split. Since that time they have not only led NASDAQ one year in total price performance but have had their share price appreciate by appx. one thousand %. That is not a miss-statement. Medicis had a business plan that was strategically viable. Bentley Pharmaceuticals (BNT) is another intriguing company that has performed a reverse split. They are in the same industry as Medicis and they have a similar business model. Since their 10 for 1 reverse, Bentley has signed a significant letter of intent with a multi-national pharmaceutical, executed a Voluntary warrant conversion, raising appx. $10 million (converting 70% of all Class A warrants) for operations and acquisitions, won a judgement for appx. $8 million dollars, and had The Dreyfus Fund file a 13G (Jan. 98) that they have recently acquired more than 10% of the outstanding stock. All of this in a post reverse split environment. Bentley's share price is appx. 2.37 a share. They have appx. 8.4 million shares outstanding. I am not suggesting that Medicis and Bentley are clones, or that Bentley will have rapid share price appreciation as Medicis did, only that a reverse split can provide the basis for real accomplishments and potentially result in share price appreciation. It is important to understand the basis for a company performing a reverse split. If the company has a strong engine for growth and is shortly to inaugurate profitability a reverse split is a prudent course of action. However, to do so simply to preserve Nasdaq or listed status (as has been recently proffered on this thread as a basis for Centura's decision) is not only short-sighted but an open invitation to anyone who would like to short the stock. I can assure you that if Centura performs a reverse for this reason that I will examine joining the shorts. Centura's key to success is continued solid growth and profitability. Those who are currently holding positions may be in a little early however the recently announced German contract is not only appealing, it may be a watershed event. Time will tell but barring a general market meltdown Centura appears oversold at a dollar a share. Best Regards, Robert W.

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