InvestorsHub Logo
Followers 17
Posts 1494
Boards Moderated 0
Alias Born 03/21/2004

Re: None

Thursday, 07/20/2006 5:47:07 PM

Thursday, July 20, 2006 5:47:07 PM

Post# of 169274
Some High Profile and Succesful Reverse Mergers!

Armand Hammer, world renown oil magnate and industrialist, is generally credited with having invented the RTO. In the mid 1950s, Hammer invested in a shell company into which he merged multi decade winner Occidental Petroleum.

In 1970 Ted Turner completed a reverse merger with failing Rice Broadcasting, which went on to become Turner Broadcasting.
In 1996, Muriel Siebert, renown as the first woman member of the New York Stock Exchange, took her brokerage firm public by reverse merging with J. Michaels, a defunct Brooklyn Furniture company.

One of the Dot Com fallen Angels, Rare Medium (NASDAQ: RRRR), merged with a marginal refrigeration company. This was a $2 stock in 1998 which found its way over $90 in 2000.

Aklaim Entertainment (NASDAQ: AKLM) merged into non operating Tele-Communications Inc in 1994.

Cross Media Marketing (AMEX: XMM), our favorite pick for 2002, merged into non operating Brack Industries in 1998. Cross Media is on track to generate $150 million in revenues and over $15 million in profits in 2002.

Although we can't confirm this from old records, ViaCom is rumored to have been an RTO, along with precious metals giant Placer Dome

There are hundreds of other examples of highly successful RTOs and thousands of failures. Individual investors can profit from knowing about these situations before Wall Street gets involved and places its own inflated value on the company. Buyers of Cross Media stock in early November are enjoying the benefit of getting in ahead of Wall Street money managers. We brought it to your attention as a virtual unknown at $6.70 on November 2nd. It closed today at $11.93, up 78% in less than three months. On that date the stock was trading at 6x next year's earnings with a 50% growth rate. If Wall Street had done the IPO you would have never seen such a compelling value in the open market.

KEEP IN MIND, We are now actually buying CVSU! IMHO, shares are valued more than $15 after the merger.
Shomidamoni
http://www.otcjournal.com/reverse_merger.html








Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.