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Microcap & Penny Stocks : CCEE Breaking Out -- Ignore unavailable to you. Want to Upgrade?

To: Timothy Hall O'Brien who wrote (7648)	11/2/1997 10:52:00 PM
From: Gary Green	Read Replies (1) \| Respond to of 12454

IMO, Bohemia does not want the reverse split- it is viewed as necessary I got the impression on Friday, in my conversations with Mr. Marcus and Mr. West(discussed here previously), that management owns huge amounts of stock, and that they fear that a reverse split would devalue their holdings. I believe that they would be at least motivated to hype the stock by announcements and by timing the receipt of revenues (say from dbExpress) to do the most to avoid a delisting from NASDAQ.* In fact, Mr. Marcus argued to me strongly (as if he was trying to convince himself) that even if the shareholders approved the authority to do a reverse split, CCEE would not exercise it unless absolutely necessary, and would work to avoid that event. He also said that in his view the shareholders objected to the reverse split more than to the other provisions in the proxy request. It appears that these guys in Bohemia have no clue that if they get the right from the shareholders to play with the float of common and to create new preferred stock, and if they also insulated this seemingly passive board of directors, the company will start to look like it has the inner fortitude of a Banana Republic. In other words, the stock will end up in some antimagnetic field where no matter how much future strong earnings, great deals, etc. would be expected to pull the price North, the huge float and insulated management would taint the stock and cause it to languish or drop. If we see (and fear) this as the inevitable disastrous result of the granting of management's requests in the proxy solicitation, why is management so obtuse? And what is management being told by their advisors? Could any professional with experience in the stock market have rendered an opinion that this package would help the price of the stock? In fact, the contrary may be true because though he may have no official title, it would seem obvious that they have run this past Mr. West,and in my conversation with him, I got the impression that Mr. West thought this proxy request by management was an ill-advised undertaking. Where members of management individually own more of CCEE's stock personally than perhaps all of those on this thread collectively have, their motivation for advancing their plan is obscure to me. I still believe that having the reverse split, but nothing else that management requested** is the course that gives me the greatest options since I can be assured that if I want to bail out of CCEE, I will be able to sell my shares on NASDAQ, a somewhat regulated, and supervised market, instead of the unsupervised pink sheets. ===================================================================== FOOTNOTES ===================================================================== * Perhaps that is why the BT deal has been only a vapor-maybe the hard numbers are being held internally until good news will be worth something viz delisting from NASDAQ. Those who in their posts here called for immediate results and press releases to boost the stock may get their wish when it comes close to the NASDAQ deadline. -------------------------------------------------------------------- * I have seen the unexplained and unsupported, conclusions, speculation and accusations here on this thread that somehow the "Dannys" well benefit personally from the enlargement of the float; but frankly, in light of their generous stock options, it seems they would personally benefit most (as would we) if the trading range of the stock appreciated. Surely the Dannys intuition (and the collective wisdom of the other owners, as expressed on this thread) tells them that what they are doing is likely to depress the price of CCEE and to over-shadow whatever good news (if any) that will follow it.