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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 -- Ignore unavailable to you. Want to Upgrade?

To: bottomfish who wrote (1555)	11/4/1998 6:29:00 AM
From: Stephen Goldfarb	Respond to of 5541

Barton: You are theoretically correct. A reverse split is often entered into by a company to reduce the number of shares and/or to increase the per share price. The proportion of the company owned after the split is the same. If there was a 1 for 10 reverse split of MVEE at a current price of .10, there would remain 9 million shares outstanding at a price of $1.00. The problem begins there. If there is insufficient demand for the shares, the new price can erode back from whence it came. That is, if investors perceive a mediocre future, the price may, and is probably likely to, drift downward. Or investors may sell. Either way a shareholder ends up with a significantly lower value then before the split. It is sometimes said that in the absence of positive developments, share price will fall on its own weight. Steve

To: bottomfish who wrote (1555)	11/4/1998 8:07:00 AM
From: out_of_the_loop	Read Replies (1) \| Respond to of 5541

Please do not go talking about reverse splits unless you know something is up. Reverse splits are not good for any company. Characteristically, reverse splits do not occur when companies are doing well. Buybacks do, but reverse splits do not. What usually happens is that if a company trades at .10 and reverse splits (say 10 for 1), the shares trades for $1 briefly - before the price plummets to approach the pre-split price. Shareholders lose bigtime. 9 million sounds better than 90, but if you own stock here, it ain't. Buybacks = good. Reverse splits = bad.