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Microcap & Penny Stocks : International Nursing Services Inc, old (NURS) new (MDIX)

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To: maria who wrote (972)5/6/1998 8:38:00 PM
From: Ludo  Read Replies (1) of 2911
 
> This software has huge potential, and any large shareholder willing
>to give this company away for .75 needs to
> have his head examined.

The word large is of particular importance here. There has been a bunch of comments on the fact that "it can be bought out at .75 with its own money", or almost its own money. But this raises the question: how much of the float can be acquired under 0.75? under 1.00? under 3? 5? 10?

If many of us hold their shares because we think the company will make 20 M$ a year in two years, or 1.00 EPS, and that it should be valued at 20 or 30X PE ratio, there won't be any takeover at .75.

Are you willing to give up your shares at .75? I'm not. I do think the company can easily make 0.10 $ EPS within the next 12 months, and much more within 24. I will be excited again if the stock jumps another 100% in a week in the near future, but I won't think it's the full potential of the company. They are in an explosive market (networking software) within a growing market (health care). And they are leaders in that market.

So, before seeing a takeover at 0.75, I would really first see how many shares one can buy without moving the price at 2$. Buy and accumulating of course, not trading in and out increasing volume with the same shares again and again. My bet is that long term players already hold enough of it to prohibit a cheap takeover. Let's wait and see if I'm right or wrong here.

Ludo
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