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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (904)	3/31/2000 1:28:00 PM
From: Biomaven	Read Replies (2) \| Respond to of 52153

NEXL tanking recently, apparently because of a proposed reverse split, coming on top of the end of stem-cell mania. The reaction to reverse splits is actually one of my pet peeves. Many stocks exit to the BB's because of shareholder opposition to reverse splits, which means they can't maintain their >$1 price. (This is not the reason for the NEXL action - it appears rather they just want a more reasonable number of shares outstanding, to attract a more respectable class of investor.) Partly, it's a Pavlovian response. Many dying companies, shortly before they finally exit the scene, do a reverse split. The price decline of course continues, and people assume it was the reverse split that caused it, rather than the condition of the company. Hence next company that proposes a reverse, the shareholders all go bonkers. Here is an excellent article discussing the issue: napeague.com I bought a little NEXL today, although who knows if we are near the bottom yet. Rick of course is much better qualified to judge them than me - I'm just betting that cooler heads will eventually prevail. Peter