To: Little Engine who wrote (20209 ) 6/1/1998 10:53:00 PM From: ElGator Respond to of 27968
Your point regarding large float/stagnant stock price is well taken and accepted, however both examples, MDIX and DR, are operating at a loss. Despite that, both companies currently have a higher stock price by at least 100%. If we give management the benefit of the doubt, and that's an individual decision, and assume that FAMH is profitable to any meaningful extent, that puts it in a entirely different category all together. It's a pretty sad commentary on the state of affairs, but, at this point, I would be delighted to see FAMH at .40 or .50. Assuming the business is fundamentally sound, and I know it is at least real, the only way I see to deal with the float issue is with a reverse. If this is done properly, as an integral part of obtaining a listing, it can turn out well for all concerned; many companies have had to do this and have done it successfully. Right now it's just a waiting game, patience. For whatever reason, they blew it; though seem to be doing all the right things to create some real value. Most of us are probably sitting on nice losses now, though, for me at least, the potential up-side is sufficiently attractive that I'll continue to hold the position until something develops. In fact, given the risk/reward here, if it falls any further I'll add within reason. If the company is anything near what they say it is, we should do pretty well. If not, well, they fooled me; that's the risk you take on the BB. All they really have to do is come out with something meaningful to restore credibility, and the price will begin to recover. In the meantime, we kick ourselves for not having sold in the 60's and wait....