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Microcap & Penny Stocks : Saflink Corp. (ESAF) Biometric Software Provider -- Ignore unavailable to you. Want to Upgrade?

To: art slott who wrote (3492)	4/28/1998 10:47:00 AM
From: GoingHikin	Read Replies (1) \| Respond to of 4676

When you guys talk about reverse splits you are only thinking about the per share price. The big numbers to watch for a company that hasn't turned a profit are "capitilzation and sales." If the company reverse split 6:1 at $.75 and then returned to a $.75 per share the whole company could be bought for under $5 million. Even if you consider future dilution... Let's be realistic, the company only has a need for near term financing, they already have a viable product. Let's say the company is actually worth a capitilization of $25 million right now. Considering they already have sales on the order of $3mil-$6mil for '98 that's not unreasonable. Even if they had another $3 million of equity sold, the per share price would only drop down to about $.65. Of course this is only a simplification to make my point! -DL