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Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: sandstuff who wrote (2617)	5/25/1998 9:31:00 AM
From: Jetter	Respond to of 11850

Sandstuff, I think you are exactly right. The real cost of the reverse merger for ME? Probably a lot less than you would think. Without knowing the details, ME did not have to spend any capital on underwriting, investment bankers and road shows. Additionally, they did not have to give up any share to the underwriters. The cost to ME for this merger is/will be reflected in that appreciated value of the public float that they do not control. How much is that? No one knows yet, but I would bet that ME insiders accumulated a good portion of the public float the previous 2-4 weeks. So now you say... It still doesn't add up, 50 MM shares at a price of $.55? Well, at this point the only people who are concerned about the share price are investors like us. Since ME has control of the 50 MM shares, their value will be gained as they conduct business and the stock price appreciates. Again, the only cost to ME is the appreciated value of the public float that they do not own. One final though, whatever assets ICVI had, now belong to ME, so throw that cost into the deal also. Its easy to think that because ME is valued at 200 MM, that they should receive 200 MM in assets for the merger. Not the case. They know, as do some here, that the value in the stock lies ahead. Thats why they were issued so much. Scott