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Technology Stocks : ExperTelligence, Inc. (EXGP)

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To: SAMS BONE who wrote (32)1/4/1999 5:51:00 PM
From: MulhollandDrive  Read Replies (1) of 337
 
John,

I understand the benefit of added liquidity, but I seriously don't believe you'll see a $10 stock splitting. For one thing it puts the share price dangerously low (near the $5 share mark) which can make it a prime target for shorting. As I understand it, you can't margin $5 and under stocks, but you can short at $5.

Some of the other internet stocks have done secondary offerings instead of splitting. It's just inconceivable to me that a split would be authorized at the current level. The spread is wide because there are insufficient MM's, IMO.

BTW, The chart looks great on the stock right now, I'm looking for small cap internet plays and this one looks good. Just hope it's not running out of gas.

bp
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