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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)

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To: Bald Eagle who wrote (25501)4/15/1999 3:25:00 PM
From: REW  Read Replies (6) of 44908
 
An example of a positive reverse as it was explained to me.

Let us say the stock is at $4 and a beneficial major strategic investor shows up, like MSFT (example). They say they want to take a large position in the company for, lets say, $5 (yes they might pay a premium). They happen to know the stock will go up a lot. They also state they want us on the NASDAQ and will put us there but they want the stock to enter at $12. That would require a 1-3 split.

Would you agree to it? I would. A lot of money in the bank, on the NASDAQ, and a major beneficial association.

The contracts and contacts to be done with the major investor would be cause enough for stock to rise nicely. Now TSIG.com already has a positive flow and is growing at this point so the additional support of the major investor would cause a catapult in the stock as it did several things:

1. Come to the evaluations offered by the NASDAQ

2. generate the additional anticipated valuation due to the association with the major internet software company

3. increase the earnings growth due the additional business attained both from the investor and it's influence.

Now what happens when the stock appreciates to a certain point? It splits 2-1. The investors get shares back but enjoy a higher value beyond where they would have been without the support of the investing partner.

I personally like it but there will always be those that won't. Everyone to their own decisions.

Bob
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