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To: FawnVu who wrote (1760)	1/22/1998 11:23:00 PM
From: John Fairbanks	Read Replies (1) \| Respond to of 27968

The last time Ira was questioned about the possibility of a reverse split he gave an empahtic "No". He believes the company can make the stock price neccessary without it. Certainly if this company were trading at something over a P/E of 3 we would be a lot closer! ;-) Actually a reverse split is a bad way of raising a stock's price. One big reason is that it makes the company much less attractive to institutional clients because a small float makes the stock less liquid. At any rate, if I remember correctly they were going to try for a NASDAQ listing before which requires certain capital and stock price levels to be met. I think it is very dangerous however to start throwing the words "reverse split" around when the company has not even hinted they are thinking about it. And yes Roo... they were shooting for the $3 requirements which should be pretty easily within reach when the aquisition is considered. I think at the moment we are getting hit with a lower EPS due to dilution for the aquisition without the benefit of the aquisitions earnings. I think once all that is announced we'll see a company that can easily reach $3 on their own merits. This of course assumes that the audtied numbers come out the same as annouced today, and from what my CPA father said tonight, he expects the numbers are finished and they are working out the fine points of footnoting and such so what we probably heard from Ira are the results of the audit. By the way, Hi Roo! ;-) -John