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Technology Stocks : Noise Cancellation Technology (NCTI)

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To: Dixie7777 who wrote (2293)8/31/1998 11:29:00 AM
From: Dr. Moze  Read Replies (1) of 2775
 
There's nothing intrinsically bad about a RS. The fact is, if NCTI is turning into a profitable company, then a RS will be a good thing. Although having absolutely *no* effect on the financials, a RS will take the stock out of the penny range where large-volume trading and spreads are controlled by MMs. Reducing the float and getting the price up can well attract institutional investors.

OTOH, if the company is just continuing as a cash drain, then the stock will continue to drop, with or without a RS.

I wouldn't be so afraid of a reverse. It's not critical one way or the other. It's NCTI's *revenues* and *earnings* that are the real issue!
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