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To: TraderGreg who wrote (15509)	5/7/1998 7:25:00 AM
From: TraderGreg	Respond to of 27968

I posted the following response late yesterday and thought it should be restated in case people missed it. Rick Edmonds asks: Could someone please explain to me the difference between a 4 to 1 exchange and a 4 to reverse split? Other than the offer of warrants, I do not see the difference. TraderGreg responds: You are basically correct. Other than money, there is no difference between the rich and the poor. What I mean by that is that the warrants are KEY. Without the warrants, a 4 for 1 reverse would tank the stock immediately, as most all reverses do. The warrants, provided to shareholders on a record date on or after the date of the reverse, provide support to counter the effects of a reverse. You sell out now and lose the warrants. BTW, the warrants, depending on their expiration date, may not get exercised for quite some time. Warrants, like options, are typically traded right up to the last hour of their expiration date. Moreover, when exercised, revenues go directly to the company, not thru a brokerage. TG