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To: Jesse Livermore who wrote (2835)	5/5/1998 8:34:00 AM
From: charles moore	Respond to of 3307

Jesse: The point I was trying to get across is nobody knows.The Company "projects" may or may not be valid. Lets say for simplicity that there is 100% Conversion and there is now 67.8 million shares outstanding. Actually lets use 70 million so I can do the Math straight out even though we know its 67.8. Now what can possibly happen?For obvious reasons they couldnt do a Reverse Split with the "Conversion" hanging over them and I havent read the particulars but I would imagine they cant do one without 100 percent conversion because whatever the rate is you would have to distinguish between old and new shares. If you did a 5:1 and there wasnt a 100% conversion and the rate was 5 to one for the Converted shares you would be getting the shaft. There could also be a Buyback if earnings started to improve.At 1 1/2 you are only talking 30 million to buy back 20 million shares then putting it at 47.6 million or about the same again or maybe a combination of the two. Who knows what can happen? This is why I jumped on her 70 million statement with no qualifying statement or time frame.A person just reading this thread and looking at buying might not go back several weeks and read all messages but they see a flat statement of a doubt that it will reach 4 because there will be 70 million outstanding period. Charles

To: Jesse Livermore who wrote (2835)	5/5/1998 8:53:00 AM
From: charles moore	Respond to of 3307

Continued: Jesse: What I like to do and it is difficult to explain here because of the Negative earnings is this: I always try to buy a minimum of 1000 shares.Now I look at the PE first and I know there is a name for it but dont care.Say the PE is 10 because the Price is 2 and the earnings are $.20. You can base this yearly but lets say .20 was the last quarter.Now I want the next quarter to grow at twice that rate or 20% so nest quarter would have to be $.24. Assuming the price doubles for whatever reason I sell 1/2 and keeping putting stop limits on the other half until the advance is finished.This is sort of simplified but you get the picture. Now lets say QDEK now has 70 million outstanding and earnings are .02 and the price is 2 for a PE of 100.Do a 5:1 reverse split and now you have 14 million shares and .10 earnings per share. If price is still at 2 you now have PE of 20 and if stock goes up 40% next quarter to .14 then you have it. Didnt Qdek have .16 with more shares? Just a scenario but as I said nothing is etched in Stone and who knows.Not me for sure. I was never good with "Tea Leaves". Charles