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Microcap & Penny Stocks : International Nursing Services Inc, old (NURS) new (MDIX) -- Ignore unavailable to you. Want to Upgrade?


To: n2profit who wrote (1054)5/9/1998 1:25:00 PM
From: Mike Moran  Read Replies (4) | Respond to of 2911
 
excuse me n2.... I was out late last night. What is your point?
I'm probably crazy for opening this debate again. Here comes the private mail. But, here's how I see the next couple of weeks.

I think during the first couple of days next week we could see a rally in the stock driven by what I believe to be illegal short covering. I am also aware of some interesting chatter about the ADRX suit coming from industry sources. In fact, if it weren't for the scuttlebutt about this rumored tender, the chatter about the ADRX suit might have become loud enough to make this folder. If the company gets over its announcement shellshock, I think it might have something to say.

I received some interesting eMail from a company I consult to in Oregon. This company has a strategic relationship with the rumored tender and is concerned that they will be cut loose if this tender goes through. That's why I believe the tender is at least possible. It's still a gut feel.

I called the company Friday. I will say that while there was concern about the price of the stock and all the rumors that surround it, there was bigger concern that the company is wasting an opportunity to put daylight between it and its would be competitors by being sucked into discussions with predator companies and constantly having to address market rumors.

I offered the company my opinion. I'll share it with this folder for what it's worth. I told the company that it needs to raise the share price of its stock. No rocket science there. Considering tender offers at 25% above the trading range are not my idea of raising the share price.

My friend from Cowen gave me a great idea on how to raise the share price. I thought it was simple, yet brilliant.

1) Announce a $1 million company stock buyback. Choose the price at the last moment. The plan would be to buy those shares in the weakest hands. Estimated cost: $400K. All of the sudden weak hands will get strong.

2) Announce a dividend distribution to all shareholders from the ADRX suit. Split a share of the future settlement with the shareholders. Give them a reason to hold onto their stock. Then take a killer hard line with ADRX. If you have them by the 'nads, squeeze, then squeeze again.

I noticed that an hour after the Cowen guy told me he was going to run this idea by the company, the stock volume increased. I have learned not to believe in coincidences.