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To: LPasko who wrote (2602)	5/10/1998 8:22:00 PM
From: Ditchdigger	Respond to of 6528

LPasko,excellent post,and well reasoned out..thank you FWIW, I agree with your sentiments on reverse splits,they can work-But,it takes time and usually the stock has to rebound from the reverse,simply for the reason you stated-misconceptions about reverse splits.Typically there is a drop in price after a split,but generally if everything is on the up and up,it is better for the health of the company in the long run.Financing,institutional investment,analyst coverage,enhanced shareholder value, etc. are the benefits that can result.DD PS:one thing IMO that we need to remember,even if restricted stock is issued-it is now used in the main earnings calculation-fully diluted earnings..So it doesn't quite have the effect it used to,but is non- trading,until registered..