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Re: trader53 post# 2832

Tuesday, 05/15/2012 5:37:22 AM

Tuesday, May 15, 2012 5:37:22 AM

Post# of 2842
ASYTQ: Valuing a Shell Stock >

MAJOR CONSIDERATIONS

ASYTQ - Yes
•SEC Reporting: it must report regularly to the SEC. This is known as a "reporting company." We want to be able to verify information about the company from public/legal filings . . . not by word of mouth or rumor. Believe it or not, there are public companies that are non-reporting.

ASYTQ - Yes•Clean: it has little or no debt, no pending law suites, and little or no outstanding convertible securities (preferred stock or warrants). We don't want anything that can complicate the reverse merger.

ASYTQ - Yes
•Small Number Of Outstanding Shares: the smaller the number of outstanding shares, the better. A smaller number of outstanding shares lessens the chance of a Reverse Stock Split. A Reverse Stock Split can lessen the chance of price appreciation.

ASYTQ - Yes
•Low Market Value: basically, this is the buy low sell high rule. A Shell Stock with a low Market Value will have a greater chance of price appreciation than one with a high Market Value. (Market Value = price X shares outstanding). NOTE: the Profile List by Market Value sorts the Shell Companies from low to high Market Value.

ASYTQ - Yes
•Cash On Hand: some Shell Companies have cash remaining from their previous business endeavors. Having cash to fund the new company's business plan will attract high quality candidates.


http://www.shellstockreview.com/ssr-valuing-a-shell-stock.html

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