Universal Medical Sytems (UMSI) Message Board

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Microcap & Penny Stocks : Universal Medical Sytems (UMSI)

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To: Wizard who wrote (1148)	2/13/1998 10:37:00 PM
From: HG	of 1672

Wizard, Hey, no problem. We've all been there. A reverse split is exactly the opposite of a normal split, usually done to increase the share price for a variety of reasons. In this case, it would appear that their reason is to qualify to be a full reporting stock. One of the criteria is that the stock price must be above a certain level for a specified period of time. In the case of NASDAQ I think it is a $5 minimum for a specified time. (30-90 days?). The company can call for a reverse split of 2-1,3-1,10-1,20-1,etc. Using the example of a 10-1 reverse. Let's assume you have 1000 shares @ $1.00. After the reverse split you would own 100 shares @$10.00. IIML after the split seems to have 7 million + outstanding. If their reverse split was 10-1 that means they had 70 million + before the reverse. If it was 5-1 reverse that means they had 35 million before the split. Etc. etc. Generally a reverse split is not taken positively by the investment community. Not always but generally. Time will tell with IIML but it doesn't look like it was received positively at first blush. Hope this helps. Regards, HG

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