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Microcap & Penny Stocks : Rande Is. . .FISHING. . [under $1.50] -- Ignore unavailable to you. Want to Upgrade?

To: darline cook who wrote (1765)	4/5/1999 9:20:00 AM
From: Rande Is	Respond to of 4766

MIXED NEWS ON AUREAL. . . A rights offering to shareholders and a 1 for 15 share reverse split for the purpose of applying to the Nasdaq for relisting. . . 20 million shares will be added to outstanding, but immediately following the rights offering will be a reverse split, which will reduce the outstanding by a factor of 15. The total outstanding post-split will be about 10 million, which is less than one-quarter of the current outstanding. Now if these 20 million shares are added to the public float, along with the current 5.8 million. . .then after splitting 1 for 15, the float should be about 1.7 million, or about a quarter of the current public float. There are no guarantees as to the best way to play this, but holding shares thru a reverse is generally never the right move. It is nearly always better to sell, then wait for the split to occur and buy back. The share price on the post-split shares should be somewhere around 8 bucks, which pushes it out of the pennies and ensures it meets Nasdaq requirements. Has the company been holding back big announcements of deals [that we had hoped and bet on] in anticipation of this event? No, that would be illegal as I understand disclosure. But I have a strong suspicion that immediately following the reverse split, when the stock is well above 5 dollars, the company will release plenty of news to support the price until the Nasdaq relists them. I have no opinion at this time on the rights offering. It appears that there will be a negative effect on the stock price at open. Could we be going to .60 cents, I cannot say, but with a rights offering there, it looks probable. And that is why we bought this when it was undervalued around .50 cents and sold off original investments at our leisure well above 1.00. Rande Is