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

To: The Dodgy Ticker who wrote (2644)	10/18/1998 1:22:00 PM
From: EPS	Read Replies (2) \| Respond to of 3702

The argument for reverse split is circular. On the one hand a reverse split acknowledges the existence of a problem. The argument given here seems to imply that the problem would be partially solved using the reverse while at the same time the same argument given points to the fact that the fundamentals will remain the same. If you think that money managers are going to be jumping up and down to buy a newly reverse splited issue which has the same pre reverse split fundamentals then you believe in magic. In fact, and this is what proponent(s) of the reverse split do not seem to understand, the downside risk after reverse split increases. This is is precisely because the fundamentals have not changed but the price has. (For example the PE of TCLN will not change after a 4 to 1 reverse split). It the prize of the stock cannot be maintained at a price bigger than one with no earnings, why would it be possible to maintain it at a prize bigger than 5 with no earnings? IMHO for the stock to do well the company need to improve at its CORE. Accounting tricks are just not good enough. Victor