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To: Jonathan Lebed who wrote (2372)1/31/1998 4:33:00 PM
From: Richard V Davis  Respond to of 27968
 
Jonathan;

The problem with a reverse split (in my opinion) is not numeric but emotional and psychological. Strong companies earning resonable ROEs and ROIs do not have to do this and the perception in the market is that only firms in trouble do reverse splits. While the financial impact should be neutral it is almost always negative. Doesn't make sense but then most market movements are based primarily on psychology (ie:investor sentiment).

Just my feeling. Well worded quesiton though.

Rick



To: Jonathan Lebed who wrote (2372)1/31/1998 5:58:00 PM
From: TINKER TAPE  Read Replies (2) | Respond to of 27968
 
Jonathan, Think about what you just said. A 1 for 100split would leave only 280,000 shares out. A 1 for 10 would leave only 2.8MM.
Umm, Now that I think about it, That might be pretty cool, but its not going to happen. That is unless I am missing something.