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To: Krukov who wrote (2955)	2/2/1998 11:42:00 PM
From: (Bob) Zumbrunnen	Read Replies (3) \| Respond to of 3906

The most common reason I've seen advanced for reverse splits is to get the stock price into listable range. However, it also sends the corollary message "the price would've never gotten there otherwise". What I would watch for here is further dilution. I've seen splits used to bring the outstanding shares down to a more palatable level, only so the company can then issue more shares. That it's a 1:10, rather than a 1:5 is very suspicious, IMO. Just conjecture on my part, but it looks to me like the intent may've been to put the price far enough above the required price for listing, that it could (is expected to) weather a 50% decline and still be listable. It's also been my experience that full listing status is often not the boon it's expected to be. I've seen other BB stocks become listed, amid expectations of resulting skyrocketing prices, only to languish. When a stock becomes listed, it finally becomes shortable. And I'm sure there are plenty like myself who are looking forward to that day....

To: Krukov who wrote (2955)	2/2/1998 11:47:00 PM
From: Andrew H	Respond to of 3906

>>The press release also states that "any potential fractional shares will be rounded up". What does that mean?. Rounded up to what level? For example, if someone had 150 shares and now has 15 shares, will they round it to 20, 50 or 100?<< Rounded up means the company will be rounding them up--kind of like you do with cattle when you drive them to market and kill them. (:>) It is a strange phrase but would only apply if you had a number not evenly divisible by 10, such as 151, 152, 153, etc. The great majority of people will have lots ending in zero, which will be evenly divisible by 10. Perhaps they mean they will round off the odd lots to the next number--if someone has 158 shares, they will just call it 16.