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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?


To: Steven Durrington who wrote (7787)6/23/1998 5:52:00 AM
From: TraderGreg  Respond to of 11708
 
Yes and yes and no and no. What I was saying is this:

If XYZW eliminated 29.4 % of its shares then theoretically a 41.7% price increase should occur almost instantly(the way it is done with forward or reverse splits)

Now, for that to occur with CSMA following the rescission of the LPS deal, the street would have had to always have believed that LPS was in no way accretive. This would certainly represent some % of the investment community.

Another group may believe that LPS was a proportionate slice of the CSMA, in which case this news would be a wash with no impact on price.

Still a third group may have thought that LPS would be far more significant than 29.4%. That group would view this action as negative.

The respective sizes of the three groups above will determine the stock price near term forward looking.

How many believe LPS was more or less accretive compared to the rest of the company is key. I once thought LPS would be major and over time felt less confident. So where do I fit in?

Cliff note version:

If one valued LPS at 0 last week, then you would buy on this news; if one valued LPS at half the company last week, then you would sell on this news; if one valued LPS at 29.4% of the company OR are down big, then you would hold on this news.

TG



To: Steven Durrington who wrote (7787)6/23/1998 12:29:00 PM
From: PeterR1700  Read Replies (1) | Respond to of 11708
 
Durro - OT: I'm sure Leanne is thrilled about having babies while you're online. Where'ya been, Mate?

Peter