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Technology Stocks : ExperTelligence, Inc. (EXGP) -- Ignore unavailable to you. Want to Upgrade?


To: SAMS BONE who wrote (32)1/4/1999 5:51:00 PM
From: MulhollandDrive  Read Replies (1) | Respond to of 337
 
John,

I understand the benefit of added liquidity, but I seriously don't believe you'll see a $10 stock splitting. For one thing it puts the share price dangerously low (near the $5 share mark) which can make it a prime target for shorting. As I understand it, you can't margin $5 and under stocks, but you can short at $5.

Some of the other internet stocks have done secondary offerings instead of splitting. It's just inconceivable to me that a split would be authorized at the current level. The spread is wide because there are insufficient MM's, IMO.

BTW, The chart looks great on the stock right now, I'm looking for small cap internet plays and this one looks good. Just hope it's not running out of gas.

bp



To: SAMS BONE who wrote (32)1/4/1999 6:13:00 PM
From: MulhollandDrive  Read Replies (1) | Respond to of 337
 
John,

time ran out on my previous post, and I wanted to clarify that additional shares have little effect on liquidity, however, a larger float can help even out volatility . A small float is great if you are riding on higher demand to the up side, you'll get more exaggerated moves either way. Even with the small float, it appears that there is not much of a market for the shares based on the volume and I think that's why you're seeing the huge spreads. High volume usually corrects that.

bp