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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: JEB who wrote (4625)	7/22/1999 1:34:00 AM
From: Jim Bishop	Read Replies (1) \| Respond to of 150070

Thanks for AVCC. Now, that will be one I would watch, and if any sort of volume started coming in, yoweee, but a float that low. So tell me, what is the going price for a clean Nasdaq listed shell?

To: JEB who wrote (4625)	7/22/1999 2:25:00 AM
From: Jim Bishop	Respond to of 150070

Jeb, your post raised some pm's to me, so for those that don't know, about "poison pills", here ya go: risk.ifci.ch A takeover defense in which the target company issues large amounts of a convertible issue with a low exercise price that would dilute any common stock position the hostile acquirer might establish. morevalue.com Explaining the role of poison pills: "The strategy is commonly used by public companies because it increases their market price and makes it unlikely that a company would become involved in a hostile takeover." (CNNfn, March 13, 1996) Background On Poison Pills: Should an investor initiate a hostile takeover of the company, current shareholders would be able to purchase additional EDS shares at half market price, making it very expensive for the unwanted suitor to purchase more stock. Analysis If a poison pill truly increases market value then why doesn't every company implement one? Moreover, let's push CNNfn's line of reasoning further. If EDS's current poison pill allows the purchase of additional shares at half price, wouldn't we increase market value by lowering the purchase price to, say 10 cents? Since when is poison good? The second half of the argument, however, is correct. Poison pills are designed to deter unfriendly takeovers, and are thus referred to as shark repellents. They act as a hindrance to shareholder value maximization not a boost. With the presence of such poison pills management does not have to worry about being takeover even if they don't do a good job at creating wealth to shareholders. debevoise.com