Zeev's Turnips Patch-No Politics (ZEEV)

[Dale Baker]

MAXF in a nutshell. I added more in low 6's and expect the chart gap to 7.50 to fill soon.

To:LLGM who wrote (32342)
From: Dale Baker Wednesday, Jan 15, 2003 8:26 AM
View Replies (1) / Respond to of 32351

The MAXF news is amazing - amazing how dumb the NASDAQ can be. MAXF had some NTL bonds converting into equity as NTL came out of bankruptcy. So MAXF shorted the "when traded" equity against their bond holdings to cut risk. On the day NTL comes out of bankruptcy they declare a 4-1 reverse split of the new shares. But NASDAQ won't adjust all the trades prior to the reverse split. So MAXF may take a $4m loss equivalent to their short position quadrupling against them overnight.
Imagine if the NASDAQ let an actively traded company do a reverse split without making all the brokers adjust your holdings accordingly.

Eventually someone should fight this out in court or arbitration and set it straight. MAXF has lots of cash to handle a one-time loss if they don't.

But it's ridiculous this happened at all.