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To: bpf who wrote (10629)	4/25/1999 9:02:00 AM
From: Steelguy	Read Replies (1) \| Respond to of 10903

bpf, You would receive 1 share for every 10 shares you hold.....therefore...if the stock is trading at .10.....after the split, the stock trades at $1.00. This is often done to make the share price a little more attractive to new investors however...quite often it is the kiss of death with an opportunity for new traders to come in and short it down again....I have been subject to this a couple of times...... Things can't get much worse now though so if it happens....so be it. sg

To: bpf who wrote (10629)	4/25/1999 11:40:00 AM
From: Alan Coccio	Read Replies (1) \| Respond to of 10903

Yup, the Steelman explained it. There are times when a reverse split can do a company some good but I've only seen it work when a company has strong fundamentals, is trying to get its stock into a certain price range and the number of outstanding shares at a more attractive level. Usually, when these BB stocks do it, you will see the price start off a dollar in Steelguys example and very quickly return to or near the old price level which means the shareholders have lost 90% of their investment as a result. Not a good thing. As the company does more and more convertible debentures, the number of outstanding shares will spiral out of control almost ensuring they will never have a positive EPS. They'll eventually have to confront that issue and I don't see any way out other than a reverse split. By the way, no one ever displays naïveté by asking questions. It's only a display of wanting more knowledge and that's a good thing.