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Gold/Mining/Energy : Tracer Petroleum (TCXXF) -- Ignore unavailable to you. Want to Upgrade?

To: Knights Bridge who wrote (556)	4/4/1998 11:17:00 AM
From: Hunter Trout	Read Replies (2) \| Respond to of 1261

I must say that last post, if accurate, is the most disturbing one that I've seen in a while. If you want to see what a one-for-ten "share consolidation" (a more cozy sounding euphemism for the dreaded reverse-split) typically looks like, check out the story of Advanced NMR (ANMR). It was trading at $.25 (sound familiar?) when it was consolidated with its subsidiary Advanced Mamography (MAMO) to form Caprius (CAPR) several months ago. As part of the restructuring, ANMR underwent a one-for-ten "consolidation" (sigh) after which the price per share was $2.50. Following the reverse-split the stock immediately went into freefall, bottoming out at around $.70 (pre-split share value = $.07). It has never even come close to its pre-split value and is now struggling to stay above $1.00 (current bid is $1.0625). So if you were invested in ANMR at $.25, your investment today is worth about $.11. The point of this story is that the above scenario is, with very few exceptions, TYPICAL of reverse-splits. Since lot of companies continue to do it under the guise of trying to "maintain and secure the NASDAQ listing" even though these attempts routinely fail to sustain the necessary price, someone must be benefitting from this maneuver. Clearly, it is not the shareholder. If Tracer strikes oil and/or acquires producing properties, the price will go up whether or not it is listed. If it undergoes a reverse split, it is virtually guaranteed to go south. So if the issue comes to a vote, just say no. HT

To: Knights Bridge who wrote (556)	4/5/1998 8:53:00 PM
From: P_Dalton	Read Replies (2) \| Respond to of 1261

Seems you approve of Tracer's move for a rollback. However using your own words, I would like to point out the circumstances which seem to be alike. They went post split from $4.50 per share to $6.00 based on "prospective deals". Then as those deals did not materialize, dropped back to a current pre-split value of about .375 cents per share. That's a 75% loss in valuation. Compare that with Tracer's 7/32 bid, this stock could drop to 1/16 or less and that's 6 cents per share in comparision. "I was an investor with Odyssey Petroleum where David Robinson was previously the President and C.E.O. Odyssey went through a reverse split in order to both maintain its NASDAQ listing and lessen the pain of dilution as it would relate to future financing activities. The share price went from $1.50 to $4.50 per share on the consolidation and eventually rose as high as $6.00 per share, based on prospective deals that the Company was negotiating." I say, show us the deal first. Base the rollback on a deal for a producing property then do and announce both at the same time. We don't know exactly what Tracer is working on, but if they announce a rollback without good news, this stock is going to be decimated. (if you can imagine that) They have been working on aquiring properties for over a year now. We are still nowhere. The current price of the stock tells you investors are losing confidence with management's ability to get the job done. I'm worried that this may be a desperation effort to buy some time, at the shareholder's expense. Or could it mean something else. Perhaps someone might like to buy a lot of cheap stock??? Who might profit from this?? A stock that I've been involved in for a long time, ATEC Group (ATEC) is rated as a buy on VectorVest with a 36% growth rate. They were about $1.87 when management decided to do a rollback of 1 for 5. That put them over $9.00. They are a good growing company which are also getting into Y2K work. The stock went from over $9.00 to around $3.50 before closing Friday around $6.00. Their quarter over quarters show a tremendous increase and they are setting records. Still most think they made a serious mistake with a roll back. I agree. I hope Tracer doesn't make the same mistake as they don't have a 36% growth rate. I for one still am researching Mr. David Robinson and want to know more about him. Why has this rollback come up right after he becomes a director? Why has each company he's been with previously done a rollback? I have asked this group recently about him, but haven't had much response. Can you tell me anything about him?