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Microcap & Penny Stocks : All American Semiconductor (semi) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Misic who wrote (828)	5/29/1999 5:21:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 952

Really?! The average trading volume is 60,000 shares per day. With the double prints that is really 30,000 shares per day. There are restrictions on buybacks relating to being out of the market at the beginning or end of the day and percentage of daily volume bought. Unless someone shows up on their doorstep with a large block for sale at $.75, there is not a chance in hell they could buy anything like $2 million worth of stock in the next two weeks on the open market, before the reverse split. At 30,000 shares per day average volume, if they bought half the volume starting now, and were willing to pay $1 average, it would take 6 MONTHS to buy $2 million worth on the open market. (Of course, they will probably buy some privately, reducing that amount of time.) Furthermore, unless you are projecting major losses soon, your forecast that the stock will trade at 10% of book value after the reverse split is just not credible. (They could not have gotten approval from the banks for this if that was the outlook.)