THNS - Technest Holdings (Prev. FNTN) Message Board

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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN)

THNS 0.00

Jun 7 5:00 PM EST

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To: Tomato Man who wrote (9999)	1/9/1999 11:49:00 AM
From: JOHN WHITE	Read Replies (2) of 15313

HELLO Tomato Man, A discussion of FNTN and reverse-share-split seems to be a type of idle gossip of the kind that pops up when we find ourselves waiting and have nothing but time on our hands. While anything is possible, the idea of FNTN doing a reverse split IMO is so remote and counter to what most of us and MS anticipate that it's pointless and ridiculous to seriously consider. When MS has been asked about this he has always flatly rejected it as an option and for several very good reasons. If (as I think) he believes that revenues will grow exponentially and that profits will be trailing very closely behind these revenues I'm sure he believes investors will want to buy into FNTN'S vision of the future and beat a path to acquire a piece of this idea via equity investment. Reverse splits are not logically one of the end results of rapidly expanding sales and revenues. A second topic of discussion that has more credibility in concerning FNTN investors is that of FNTN'S expanding outstanding share count. (I addressed this subject a few months ago when the outstanding share count was around 10 million and my opinion hasn't changed much since then). Most of what we've heard is that this is BAD. But there are potential positives regarding share increase that can off-set some or even most of the negative consequences in FNTN'S case. One of the major prerequisites of mutual funds as they evaluate possible share acquisition is the trading liquidity of the company under scrutiny. Ease of entry and exit of an issue without driving the share's price to extremes is one necessary component in the selection of a mutual fund buying into any stock. Fund acquisition of a company's stock should be viewed as good in spades. Mutual fund purchases help dry the trading float up rapidly causing the shares to sell at premium prices. But IMO the most important aspect of MF buying is that it lends credibility to the company. Mutual funds usually do an exceptionally good job of researching a company's potential future before buying into it. Individual investors know this and are encouraged to follow suit in their purchases of these mutual fund "validated" company's shares. Mutual fund buying can ultimately help create a situation in which a company's share price explodes. I'm aware that there are exceptions to this idea but in general this is how it works. John

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