You are missing a huge, huge part.....there was good stuff left in TRDY before the sale. The old CEO got all the good stuff in TRDY moved it all into his own private company and took the debts along with the good stuff.
Simple plain english terms: A public shell is like an empty shoe box. It's just a box that houses a company or group of companies. In that box goes all the stuff the company does, makes, sells, owns rights too etc. Also, all the bills and debts the company owes go in the box as well. A NASDAQ shoe box is better than a pink sheet shoe box. An otcbb is better than a pink shoe box.
TRDY gave everything in their shoebox, assets, businesses and debts to the old CEO as he was leaving. Then they sold the empty TRDY shoe box to Stan Larson for $1.00. Stan then put an idea he has for a new company into his $1.00 shoe box.
Now the market cap for the TRDY shoebox along with Stan's new hope for a business is currently around $7 million dollars.
What do you think that shoe box is worth? $7 million, $70 million?
Now Stan can always throw more good stuff into the shoebox later and then it might be worth more money.
Now in a nut shell that's what investing in these shell deals is all about.
A)What do you think that shoebox is really worth? Sometimes you don't even know what's inside the shoebox. Lot of people on ihub love to guess. Some even pretend their guesses are the truth.
B)More important than what is the shoebox really worth is the answer to this question. If you take nothing else away from what I'm saying....hold on to this thought.....It is more important what others will think the shoebox is worth and what will they pay to own a piece of it than what it really is worth. Markets trade on perception of reality, not reality.
Now if I made the rules stocks would trade based on A but since I have to swin in the same stream as all of you....I base my trades off of B not A.
