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Technology Stocks : Microprose, MPRS -- Ignore unavailable to you. Want to Upgrade?

To: Hansy who wrote (318)	3/7/1998 9:02:00 AM
From: Richard Makowiec	Read Replies (5) \| Respond to of 633

Ahhhh, a sensible post (relative to this reverse split stuff). Thanks Hans...I was about to do it myself. The Yahoo board is snow balling this one too. I bought more this past week at $1 13/16 and intend to pick up a bigger chunk on Mon at $ 1 1/2. Like you indicated...the co. has stated that they have enough capital for a year. That's what my play is on this one. Don't really care about the in-between trading prices (except to the point that I can buy more cheaper). I'll measure my results based on the time horizon I have chosen (1 year). Until then I sit tight and awiat product launches. As far as the split...I wish a 1 for 2 would occur, looks like it may not be enough though for NASDAQ. Ahh well, what happens happens.... Of course the long shot play is always in tact as well. If GTIS assessed value of $8 5/8/share months ago with no major product releases, why would it not be, at least partially, valued in that range today with no major products released yet? Sure a couple qtrs. of terrible results have occurred which could present a strong case for the $8 + value being lofty...still, $4-5 seems to be fair (IMHO). When it arrives at that who knows...again, I'm in until next x-mas (or longer...will decide about that when x-mas is closer). A lousy couple months have passed since the GTIS break-up....jeesh, alot of people here and on the Yahoo thread expect things overnight. Some co's may be able to acomplish that...MPRS is not one of them (due to the challenges they face). Much more than a few months are needed here. Either a buyout occurs or it will take 3-4 qtr's to get rev's up and the products out. Anyone hoping for anything else sooner should reconsider. Have a nice weekend all, Rich

To: Hansy who wrote (318)	3/7/1998 4:57:00 PM
From: Bonzo	Read Replies (1) \| Respond to of 633

If you are implying that I or someone else started a reverse split rumor you are mistaken. It was reported on the Yahoo thread by a poster (Snake) who personally had met with Race and Louie and was told that the Board of Directors had already approved either a 4:1 or 5:1 reverse split and it will be voted on by the shareholders in the next several months. I have no reason not to believe the meeting took place. However, I will agree, unless on the wire it is not official. I have a call to Investor Relations so I may seek to confirm the Companies position. My personal experience with reverse splits has been devastating. I asked those who disagree with it to write the company and let their feelings known. I suggested that a listing to the Small Cap board was better than a reverse and not as psychologically damaging to the shareholder and the share price. I believe MPRS qualifies for a Small Cap listing. 1000 shares bought will still be a 1000 shares owned, not 250 or 200 (albeit at a higher split adjusted price). MPRS purchased at 7 would have to move to 28-35 for breakeven. Not in this millenium. The listing requirements for the Nasdaq Small Cap board are as follows: --------------------------------------------------------------------- Summary of minimum requirements for continued listing, effective February 23, 1998: (1) Net tangible assets of $2 million, or market capitalization of $35 million, or $500,000 in net income for two of the last three years Public float of 500,000 shares $1 million market value for the public float (2) 300 shareholders $1 minimum bid price (3). Two market makers Corporate Governance Standards (see initial listing requirements) 1 Net tangible assets are total assets less total liabilities and goodwill. 2 The public float consists of shares that are not held directly or indirectly by any officer or director of the issuer and by any other person who is the beneficial owner of more than 10 percent of the total shares outstanding. 3 A company is not in compliance with this requirement when its stock drops below $1 for 30 days. The company will be notified of delisting proceedings unless the stock closes at $1 or more for 10 consecutive days, within 90 days of falling out of compliance.

To: Hansy who wrote (318)	3/7/1998 5:15:00 PM
From: Bonzo	Respond to of 633

Don't worry this will be my last post on the possible reverse. I will post the companies response to my inquiry after my discussion with them. --------------------------------------------------------------------- >>Watch out for reverse splits! Here's how a reverse stock split works. A company's stock currently trades at $1. The company implements a one-for-five reverse split. Every five shares of pre-split stock becomes one share. The investor, who had previously held 1,000 shares, now owns 200 shares of the post-split stock. The new stock price immediately after the split is $5. The market value of the position, before and after the split, is $1,000. What could be wrong about that? Because when such a reverse split takes place, it's often a glaring indication that all is not well at the company. True, the shareholder does not suffer a loss of asset value or a dilution of ownership value. But this equality is usually very temporary. When a company undertakes a standard stock split, things are usually going well. The business operations are profitable and growing, and the shares are moving steadily upward. Such is almost never the case for the company implementing a reverse split. Pure and simple, reverse splits are facilitated to improve the appearance of the company and its stock price. The company whose stock is $5 appears more valuable than one whose stock is merely $1. But if the company really believed in its future and wanted to reduce its amount of outstanding shares, it would start to buy them from the market. Furthermore, the stock is now ripe for a secondary offering of more shares by the company. For the pre-split shareholder, his percentage ownership in the company will endure a magnified degree of dilution the moment the new shares hit the market. The company's objective for the share offering has yielded the desired capital, but the risk has been transferred to the shareholders. It makes no monetary difference to the company.

To: Hansy who wrote (318)	4/1/1998 8:36:00 PM
From: Snake1132	Read Replies (3) \| Respond to of 633

The last MPRS board meeting was Friday, February 27. Events now make it clear that at that meeting the Board decided that a reverse split would be put before shareholders if there turned out to be no other practicable way to avoid a move to the Nasdaq Small Cap Board. The company waited until the end of March because it could: The Nasdaq grace period for being in non-compliance ends May 23. Prior company statements in the February call to analysts indicated the company was not willing to accept a delisting, nor did it see any way other than a reverse split to reasonably meet the listing requirements. It is worth talking about these issues before they become official because the market learns of them before they become official. The stock rose 10 straight days before the GTIS deal was "official." The stock dropped precipitously days before the cancellation of the merger was "official." So far, market reaction to the reverse split has been muted. Only on Tuesday did volume suggest there was some selling pressure because of the 1:5 split proposal. To all those who have lived through reverse splits I'd like to ask if MPRS stock is behaving typically? If there is selling, does it come when the split is announced, (as one would think) or later? Many posters to this and other boards really didn't want to see this come to pass... to all who are against the split, I really want to know what you think will happen to the stock price in the next months because the company is going forward with it. Have we just begun to see the effect? I am certain of one thing. The reverse split has only psychological implications in the long run. A $40 million Fiscal Q3 will erase the Market's memory of a reverse split in May. Snake