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AS far as anyone knows, GWOW is still a clean shell just waiting for someone to merge a company into it to give it instant and huge value -- based on the TINY number of shares available for trade.
The following write up was from someone who researched the shell. He obviously put his spin on what could happen if an extremely low-float shell like GWOW were to be merged into. The float is gone and in solid hands -- this we know. That's all we know. So we wait for that day when perhaps his evaluation actually happens!
Updated figures are based on the original fellow's research, which we have no reason to believe is not still accurate.
This illustrates the value of owning a piece of this low float issue:
Market cap at even .15 = only $555,000
Any private co merging into this will create at least a 4-6 m market cap, possibly much higher....
3 m market cap = .81 share price
4 m market cap = 1.08 share price
5 m market cap = 1.35 share price
6 m market cap = 1.62 share price
A 6 million market cap these days is considered very small, these are reasonable and conservative expectations....
If they were to merge with a firm that dictates a 20 m market cap this issue will be worth dollars..
Example.. 3.7 o/s shares, expanded to give the public shareholders a reasonable 10% of the merged company.. this would put the shares o/s at around 6 million or so....
A 20 million market cap would put the share price at an astounding $3.25+ ... hard to believe.. but it is simple mathematics... cut it in half if you believe the public would only end up with a low 5% - this still commands a $1.70 share price...historically speaking, it would be somewhere in between based on numbers from recent merger activity and transactions that are readily available to the public via filings...
This information as of Tuesday October 9, 2007
GWOW Overview and Comment
GWOW is the former Monarch Machine Tool formerly listed on the NYSE, symbol MMO.
The o/s is 3.7 m, the float is 500-600k.
GWOW filed Chapter 11 Bankruptcy in 2001. The assets were sold to a company that was named Genesis Worldwide 2 (GW2), GW2 is a separate operating entity that is legally unrelated to the shell being discussed here. This has caused some confusion of late as GW2 has been releasing news and some have believed that this pertains to the subject shell. Not true. Presently, GWOW is a shell.
Months ago on several occasions I contacted the creditor’s committee attorney appointed by the court and he told me there was interest from a few parties about the GWOW shell. He also related that they were nearing the completion of the BK, and that it would be possible to transfer/sell the shell to an interested private firm.
On October 5, 2007, a huge amount of buying came into the stock and it trended straight up from below .01 to close at .08 - the high of the day, with little selling.
The Bankruptcy has been completed and dismissed, effective September 27, 2007.
Here is link to a copy of the dismissal order:
http://img179.imageshack.us/img179/3100/gwowcourt2hh0.jpg
Original research in 2007 of this issue revealed that National City Corp (Parent company of National City Bank, Cleveland, OH) filed an SC 13G with the SEC in February, 2007. For many years National City had filed and disclosed their ownership in GWOW. In this filing, they stated they no longer have their position. Legal counsel for National City when contacted in 2007 would not comment on who received the shares or describe the conditions under which they were transferred. National City did not sell them in the open market, this is for sure. Volume of this amount does not reflect during the time period in question. When the attorney was asked for the creditors committee about the status of the National City shares, he would not comment on the whereabouts of the shares.
Conclusion: The shares were sold or transferred to a private party(s) or returned to the court and/or a creditor in an off market transaction.
Link to the filing that shows National City disposed of their shares:
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=4959567
Interestingly, another subsidiary of National City (NatCity Investment Advisors) is listed as the investment banking advisor while GWOW was in BK. This subsidiary is one that would advise the court on subjects that would pertain to the disposition of a shell among other investment banking/public company matters. Keep in mind that it is National City who transferred their shares to some undisclosed party.
Link to copy of the filing that shows NatCity Investment Advisors, a “special situation investment banking consultant” as advisor to the court:
http://img179.imageshack.us/my.php?image=gwowcourt1ds6.jpg
In addition, there was a revealing development that was found on the Ohio Secretary of State website. For months and months, the corporate status for GWOW was “cancelled” or “dead”. In 2007, the SOS site reflected that the corporation was now listed as “active”.
Here is a Ohio Secretary of State link copy that shows Genesis Worldwide now reflects as active:
http://img107.imageshack.us/img107/4449/gwowsosbp0.png
Conclusions:
The BK is finished and dismissed per the court filings. Tthe GWOW shell may now be transferred or otherwise sold without further order from the court.
The corporate charter with the State of Ohio is suddenly “active” as someone is in process of updating the filings.
The shell can now be utilized for a reverse merger.
The question that remains: Who will be the merger partner and when will the public be informed?
It is possible that one of the private company creditors involved in the BK may be merging into the shell, I had discussed this possibility with the attorney in my earlier calls and he did not deny that scenario as being an option. This would fit with why National City transferred their shares during the BK - an unusual event that interestingly, people close to the situation will not discuss.
Authorized Shares: 12,000,000
Source: Filings and Legal Counsel
Outstanding Shares: 3,785,696
Source: Filings and Legal Counsel
Float: 500-600 k m/l
