Thanks Harry..
Just a few of my thoughts regarding this action and i really expect other investors to jump in and voice on what is happening here even if you have not been though a reverse split..
1. We have no control over the voting on this matter. If the 3 Joffe's want it they will vote their 60% some 18 odd million shares.
2. With general market weakness, even though a move to very solid smaller capped companies MAY occur during an exit from the larger over
priced ones, now is not the time to implement this split. I was glad to see an extended date of DEC 99 for a working time frame. This allows time for the market to recognize the up coming earnings, 1st time profitable Quarters, and move us to above 5$ and That is why i would vote no.
3. Not glad to see the combination of reverse split and dilutive redemption issuance of a ?? number of shares not to mention the stock options. If it is at 1:5 or less then we may find ourselves knocking at 5$ a share defeating the 1st premise purpose for this split and that is where i would vote no. aT 1:10 we could still drop back to 12-15 and still be within the limit for NASDAQ but i am not convinced that this is a good reason for doing this split. Market exposure is coming I am willing to wait why can't they? Well They may also have other thoughts for future stock splits down the road besides that the redemptions and the stock options will wear on the stock price when added to the 31 million shares already and these are not the only positive aspects i see.
4. The company leaves themselves open for class action suit if they do this at the wrong time. What they think, and i Quote,is a "practicable time" could move against us and even drive the price lower than 12 after a 1:10. This puts them into the position of nearly predicting the market or its perception of themselves. not good
Leaving 3 million shares as before, however without the options and questionable conversions dilution, MAY provide Demand with a reduced #
of shares especially if continued large % revenue increases are maintained and this is why I MAY vote yes. It really does depend on the dilution, Market timing and continued good procedure numbers, all of which we really have no control over as 1st mentioned.
I would hope they would wait till the end of the year results to see if we can break the 5$ mark if the 3rd and 4th Q's are on target.
thanks again and i am sending this as a copy to MGNT to express my feelings as a share holder because we have not control over the voting.
ar. |
