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

To: Dusty Vestal who wrote (10349)	4/3/1998 11:48:00 AM
From: Double Dipper	Read Replies (1) \| Respond to of 27968

To all, The biggest trade I have seen today is 20K. If I were to guess it looks like SI holders increasing their positions early on. Wondering what those block sizes will look like about 30/45 minutes from now. Kevin - Smiling Smiling SMILING

To: Dusty Vestal who wrote (10349)	4/3/1998 11:54:00 AM
From: John Fairbanks	Read Replies (1) \| Respond to of 27968

Yes he isn't understanding. This is absolutely not a reverse split, it is a reverse merger. If he wants to sell that is his peragative, but he would be doing it at the worst time. In a nutshell... reverse splits are bad because a company does them simply for a lot of reasons and none of them are good. Take ATXI for example... their reverse split was an attempt to keep uo their share price when the root of the problem was that their business isn't profitable. So I guess you could say that any company actually considering a reverse split probably has far more serious problems and the RS is simply a way to poke at symptoms rather than the cause. The other problem with an RS, is that it is an invitation to short the stock because not only have you boosted the price higher (not in actuality maybe but at least in perception) but you have also sent up a red flag to the world saying you are in trouble. On the OTC this is a death knell for a company. On the NASDAQ it usually isn't so spectacular but more of a slow agonizing death. In FAMH's case, it is TOTALLY different. This is a reverse merger, and the share exchange is simply part of the merger process, not a desperate attempt by management to cover their mistakes. This will move us to the NASDAQ where our grossly undervalued stock can be fairly valued. One final note... if this WAS a bad thing, the price woudl reflect it immediately because the market always values a stock on future expectations. If the market believed this was bad, your friend would have lost his shirt already and selling right before the actual merger wouldn't help.