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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON?

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To: John S. Baker who wrote (6112)5/28/1999 12:25:00 AM
From: Tai Jin  Read Replies (1) of 6931
 
Theoretically speaking, a reverse split would not be a negative if at that time TSIS had great earnings and demonstrated earnings growth. Most companies doing a reverse are either in danger of being delisted and/or have very bad fundamentals. It's no wonder that they continue to fall. There are stocks which have reverse split for legitimate reasons and have not suffered for it. Those companies have solid fundamentals. Therefore, I feel that TSIS must also have solid fundamentals before it attempts a listing. With solid earnings growth, the stock may well appreciate enough for a listing. But if not, at least a reverse should not be detrimental. Trying to get listed just because management believes it would help the stock price is not in itself a legitimate reason. That would be like putting the cart before the horse. Sure, it would open the doors to institutional investors and others, but they won't invest anyway unless there is very strong earnings growth (especially for a company coming off the pink sheets).

...tai
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