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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Bill Brown who wrote (6260)	3/13/1998 1:24:00 PM
From: John Fairbanks	Read Replies (2) \| Respond to of 27968

Bill, no it absolute is NOT a reverse split. It is a reverse MERGER. Although they might seem the same they are very different... in the RS case, we would have less shares outstanding but we would still have to go through a lengthly NASDAQ application process and during that time the MMs would short us to death and abort the whole process. With the RM, we end up with less shares outstanding but we immediately find ourselves with a NASDAQ listing. We are basically merging with a shell company that has nothing to offer but their listing... FAMH came public originally through the same action but they merged with a BB shell and that's why we are on the OTC-BB right now...

To: Bill Brown who wrote (6260)	3/13/1998 2:23:00 PM
From: Dan Major	Respond to of 27968

I still don't understand how anybody could call this a reverse split in any way! The way I see it, in a reverse split if a stock is selling @ .50 and you own 400 shares and a 4 for 1 RS occurs you have 100 shares @ 2.00 The exact same value. What we have here in a reverse MERGER is you get 1 share of The Nasdaq Co. for every 4 shares of FAMH. The important part is we don't know who the other Co. is, so we don't know the value of our 1 share after the merger is final. But I know IRA knows that this stock is very undervalued where it is trding right know. So this leads me to believe that value of this unknown Co. divided by 4 is greater .50-1.00 that is why I believe under 1.00 is a bargain Dan