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Biotech / Medical : Techniclone (TCLN) -- Ignore unavailable to you. Want to Upgrade?

To: shero who wrote (2494)	8/29/1998 10:17:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 3702

Shero, since you have forgotten despite my earnest endeavours, I'll give them to you again, one at a time. *Many people won't buy a company valued under $5* This reduces liquidity in Techniclone because there are fewer buyers and sellers. Suppose somebody wants to sell their Techniclone stock to take a trip to Mexico, they are less likely to find a buyer, so will have to discount their shares more to attract one. Quite straightforward. Any difficulty with that concept? True enough, some people specialize in penny stocks, but they are relatively few and are in the bargain hunter, distress sale category. I'm sure TCLN sellers don't want to be bargain hunter cannon fodder. Maurice

To: shero who wrote (2494)	9/2/1998 1:24:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 3702

Shero, did you see Techniclone touched $1 again? Very briefly. That should give you a clue on another reason for a reverse-split. If TCLN trades below $1 for too long, the Nasdaq people won't allow it to be listed. That will mean reduced visibility to the investing public, less credibility, less liquidity, lower share price. Shareholders often prefer to have their share showing a higher price although it doesn't affect the dividends they get paid. Maintaining a Nasdaq listing enables the company to obtain finance via new shares at better terms, with previous shareholders being diluted less than would otherwise be the case. You can see the dilution that happened with the S-3 deal as an example of the undesirability of a low share price when new shares are being sold. *Maintain Nasdaq listing* Okay, that's two of the 8. Got those? Mqurice