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Microcap & Penny Stocks : Liteglow (LTGL) -- Ignore unavailable to you. Want to Upgrade?

To: Leo Jon who wrote (1437)	4/19/1998 3:47:00 AM
From: 246810	Read Replies (2) \| Respond to of 4715

TO ALL TO ALL: Regarding short sales, reverse splits and shareholder approval, in reverse order. I don't think any shareholder approval is required for a reverse split. A reverse split does not change EPS just earnings because the number of shares decreases in proportion to the increase in earnings. It only creates additional market value in the stock if people perceive a higher priced stock as being more worthy than a lower priced stock and by buying it push the price up. It makes selling more treasury stock to that type of buyer easier. A reverse split usually causes the price to dump. Then if it is a worthy issue it will climb back up based on earnings. Harvard Scientific is an excellent example of this. My unverified understanding is that one cannot short a stock under $5. However, the MMs can. Since there is little control over the MMs, they could short for a "good" client house. Or they could short to start a dump and then buy back in to make a little money. After all, MMs are just a bunch of speculators with cash and computers. If you buy pennys on and for fundamentals you have to be very strong. This is because the MMs and the management will and can play all kinds of unregulated games to make money. Frankly they are not concerned with the stockholders. The management started this company and they don't view it as anyone's except theirs. Therefore anything an IR guy says is suspect, because the CEO could be very well lying to him. They are trying to grow the business or they are trying to rip off salaries while the business fades away. In this case with actual product on the shelves, I don't think the latter, because they could have just taken the money and run more easily. The trading range players will get out on the next surge. The fundamentalists will hang on for success or failure of the product and marketing expertise of the CEO. 246810