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To: Stroke who wrote (1128)3/25/1999 11:07:00 PM
From: Frederick Langford  Read Replies (1) | Respond to of 2662
 
FG, your take on reverse splits actually being positive are quite interesting. I must admit I only know what I've heard and most of it hasn't been good.

So much depends on market conditions and timing the trade...
Micros' have been nice lately.
Fred



To: Stroke who wrote (1128)3/25/1999 11:40:00 PM
From: Francois Goelo  Respond to of 2662
 
Stroke, MDIH, I don't advocate a reverse split for the sake of it ...

but, in the case of MDIH, which is a sound and profitable Company with little competition, there should be no need to be worried about a reverse split if no other solution is available.

If, at the same time they hire a very capable PR/IR firm, the shares could actually soar towards a level more in line with their earnings, say the $3.00 to $5.00 range where , IMO, they belong.

Regards, F. Goelo + + +



To: Stroke who wrote (1128)3/26/1999 1:25:00 AM
From: RavenCrazy  Read Replies (2) | Respond to of 2662
 
On the contrary, a reverse split will REDUCE the number shares in the o/s and float. If it's 5 for 1 at a price of 1 dollar, your 1000 shares will turn into 200 shares, each valued at 5 dollars. Hope I don't have this mixed up, but it's the way I've always seen it.

Reverse splits are usually but not always, bad. "but not always." Examples abound, but naturally I can't think of any to add except IMAL.

MDIH is, from what I know, a good stock. If they do the reverse split and no disaster follows (which I don't expect), then the halting stigma of reverse splits is over and there shouldn't be anything from moving us north on the merits, including earnings, of the company.

Raven