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Microcap & Penny Stocks : SCTU - SC & T International Inc. -- Ignore unavailable to you. Want to Upgrade?

To: wallstreeter who wrote (685)	4/22/1999 10:40:00 PM
From: dexx	Read Replies (1) \| Respond to of 741

Wallstreeter, I checked on that, and I found this press release from July 9th, 1998. It reads as follows: SC & T Internantional announced today that shareholder approval was given to issue 50,000,000 additional common shares and to reverse split the common stock at a time deemed appropriate by the company's board of directors. Both proposals passed with an average shareholder approval rating of 84% which clearly represents shareholder approval of management's future objectives for the company. Jamie Copland, stated, "This is another advance in a recent series of major steps by SC & T directed towards rebuilding shareholder value and confidence. Proxy approval will also provide SC & T with additional common stock necessary to attract new financing for the company. The company has made no decision as to when it will effect a reverse split. It wants to focus on new product introductions, increasing sales revenues, and would like to see its stock price increase prior to any reverse action being taken. Copland stated firmly that, "It is not the intent of SC & T to dilute shareholders through a reverse split, but rather to add value to the stock, reach a price level that would allow a relisting on the NASDAQ Exchange, and to have additional common stock for financing purposes." Copland closed by saying, "SC & T is planning for major revenue growth during fiscal 1999, and that it would take additional resources to maintain its R&D schedule and achieve sales revenue estimates. The proxy approval will assist the company in these endeavors." SC & T International, Inc. is a rapidly growing company that develops and markets innovative products for the computer and video game industries under its PLATINUM SOUND(R) and ULTIMATE PER4MER(TM) brand names. The line includes subwoofer and speaker enhancements systems, and a variety of video arcade racing wheels and game controller products. SC & T has its headquarters in Scottsdale AZ with offices in Canada, Asia, Europe and the United Kingdom. For more information, visit our web site at www.per4mer.com Wallstreeter, thus far they have not enacted the proposed reverse. IMO, the only reason a formerly NASDAQ listed company (like SCTU) should ever do a reverse is if the company once again meets listing requirements except for price - and that by doing the reverse they once again can qualify for listing. Based on SCTU's current outstanding shares (45 million), the current market cap of the company is about $4.275 million which is ridiculous considering they take in $6.5 million in annual revenues. So, if the cash flow is positive (of course that's just one leg of SCTU's financial table), SCTU could possibly do a reverse and sustain the new price. The only time a reverse seems to be good is when a company is gaining ground and they use it to qualify for listing. The company appears to be following the game plan they set forth in the press release. So, I would imagine they would follow through with a reverse at some point. If we continue to see revenue growth and increased profitability, I don't think a reverse would have a very negative impact (and may, in fact, be good if it is the last requirement necessary to qualify for a re-listing on NASDAQ). Dexx