Snake it does appear that Mr. Krause may have been less than candid with me when I called to inquire about the reverse. It seems he was a financial consultant with MPRS and probably had no business filling in for Virginia Turner of I/R at the time. His position has been filled permanently by John Belcher (recent announcement) as CFO I believe. So you were correct with the information that you provided then. I did not mean to imply that you weren't and was merely reporting what Krause had told me. Anyway the 1000 additional shares that I recently purchased at 2.25, I sold right after you posted the announcement about the reverse split at 2 5/16. Thanks for posting that information. I was expecting it to occur several months down the road. I have to learn never to make assumptions about this company, however I can thank Krause for some of that. I still hold my original position at 7.00 (ugh). A 1:5 reverse means a 35.00, breakeven shareprice for me. Of course I will have to average down once the reverse takes effect as it has been my experience the stock will normally trend down prior to the reverse, especially after it is officially announced and released on the wire. 1.50 is definitely possible again imo. Of course once the reverse takes place the stock is a short candidate which may continue to place a downward bias on the stock. However, as Coy and others have pointed out, if MPRS is successful with their release schedule and they show tangible signs of increasing top line revenue again the instability in the stock may be short lived. That said, 35.00 in two years is extremely unlikely imo. Why? Take a look at THQ. A 1:15 reverse in Feb. 1995 occurred and it took 3 years for the stock to hit 32.00 before the recent sell-off. THQ has trailing earnings of 1.35 (7M shares out) and projected '98 eps of 1.63 min. However they have Brian Farrell, perhaps the best CEO in the video game business - at least his turnaround performance with THQ has supported that feeling. In addition, THQ has no short or long term debt and an extremely efficient operating and business model. That is definitely not the case with MPRS with lots of debt and many internal development studios to feed - just the opposite of THQ. In addition, MPRS management is still extremely suspect imo, although they do seem to be addressing that situation by bringing in what appears to be industry experienced management. Still I, along with many others will have to average down at some point, when in fact it was never my intention to do so, or hold so many shares. Let me ask you and anyone else a question that has not been answered satisfactorily to me by the company or anyone else.
"What is so bad about a move to the Small Cap Nasdaq board"? And why would this move be more detrimental to shareholders (short or long term) than the reverse split? I do not consider this a "delisting" from Nasdaq in the sense that MPRS is now trading on the BB - its not. The Nasdaq Small Cap is the next "tier" down from the NMS. Before we vote for the reverse this question needs to be answered by the company and I don't mean by Mr. Krause either. Good Luck to all MPRS longs. |
