Penny stocks can reap many benefits from merging with a larger company. Assuming the amalgamation makes strategic sense, the benefits can include:
•Economies of scale: If the merger increases the number of products produced, or total revenues generated, a company can decrease expenses on a per-item or per-dollar basis. The right merger can also significantly decrease fulfillment costs, which are the expenses required to provide products or services.
•Increased takeover defense: Larger companies are harder to take over. By growing through mergers, a penny stock becomes that much bigger, and as such, that much more difficult to be bought out.
•Consolidating operations: Whether bringing all the administrative functions under one roof, or running the sales and production in a single location, there can be significant advantages to both companies by consolidating their operations.
•Expanded offerings: Often two companies in a similar industry but with different specialties can come together to provide a more complete solution for their customers.TMMI and RTN PRICELESS!!. And then there's what STEW mentioned yesterday: If a
company needs a minimum share price to be listed on their exchange but fall below that threshold, it could do a reverse split to bring the share price higher. If TMMI is successful with RTN and their research program;I would think there would either be a “amalgamate” or The Company TMM,Inc makes the move to the big board on their own!!.
No doubt, you will recognize most of these companies
Netegrity $2.18 to $73.20 3487%
(acquired by IBM)
Inhibitex $2.35 to $24.08 925%
(acquired by BristolMyersSquibb)
Cellstar $1.44 to $13.50 837%
Iomega $3.25 to $13.90 328%
Nanophase $3.75 to $16.75 347%
Immunomedics $1.44 to $29.12 1922%
Total Renal Care $3.12 to $26.95 741%
Voxware $ .90 to $10.31 1046%
Corvas $3.00 to $23.25 675%
Cytogen $2.12 to $17.50 725%
Verilink $3.00 to $14.62 387%
GeneLabs $2.31 to $10.72 364%
Now, let the Naysayers jump onto my post!!.
TMMI TRUDEF moves onward and upward Worldwide!!.
