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Microcap & Penny Stocks : AmeriResource Technologies (ARET) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Jens Tingleff who wrote (4985)	1/5/1999 10:24:00 AM
From: Richard Mazzarella	Read Replies (2) \| Respond to of 7609

Jens, IMO that's pure bullshit. Any company that reverse splits without earnings quickly comes back close to the presplit price. The quickest way to decrease shareholder value is through a reverse split, no doubt about it. Now, if the company had earnings to support the stock price (P/E), then you have a different story in a reverse split.

To: Mr. Jens Tingleff who wrote (4985)	1/5/1999 10:47:00 AM
From: Siber	Read Replies (1) \| Respond to of 7609

Jens, Reverse splitting for companies is usually a bad idea. However, even if they did do it and decided to issue 20MM of shares, look at it this way: First, who would buy those shares with a company that doesn't appear to have the capacity to make money. Secondly, have you given consideration as to the cost of a second offering of this magnitude? I would presume with the accountants, attorneys and brokerage charges that the cost would come close to a million dollars. This would put ARET basically in the same situation that they were in before they did all of this maneuvering. Just my thoughts. Regards, Helene