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Technology Stocks : Claxson Interactive Group Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (56)	8/12/2001 3:02:07 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 66

LCTO to reverse split its shares: thestreet.com The Five Dumbest Things on Wall Street This Week By K.C. Swanson Staff Reporter 8/10/01 8:14 AM ET 4. Reverse Splitsville. Population: El Sitio This week Argentine Internet media company El Sitio (LCTO:Nasdaq - news - commentary) decided on a 1-for-10 reverse share split for its common shares, effective Aug. 22. The company has been hanging on by its fingernails to Nasdaq membership for months, expecting to receive a delisting notice because its shares have been trading below $1 since April 4. The day the reverse split was announced, El Sitio's shares closed at 26 cents. But a reverse share split, a bit of market legerdemain that doesn't change the underlying value of a stock, looks like a futile -- and money-draining -- undertaking for an unprofitable Latin American content startup whose stock has tumbled 94%. The company aims to merge with Ibero American Media Partners this fall, though no date has been set. The merged company would subsequently get a new ticker. El Sitio -- Spanish for going to zero? -- also happens to be one of the companies embroiled in a brutal IPO-gouging scandal. Several class action lawsuits lodged against El Sitio claim that underwriters including Credit Suisse First Boston, Lehman Brothers, and Salomon Smith Barney offered El Sitio's IPO shares in exchange for extra-high commissions from investors.