Way to go Dino--another great find!!!
Here is a copy and paste of what (IMHO) is significant to us--
What are NOL shells?: A ""NET OPERATING LOSS"" For us to be used in a "Carry forward"---
So, first things first, what are NOL shells? A NOL shell is essentially a company that previously incurred substantial losses over an extended period of time and currently has no business activity.
In the U.S., if a company generates a net loss in a period, it is allowed to "carryback" the loss two years (assuming it was profitable in the prior two years) and get a tax break or it can carry the losses forward for 20 years to offset future taxable income-hence the term "net operating loss carryforwards".
Benefits and risks of NOL (Net Operating Loss) shells:
There are three main reasons why I like NOL shells.
#1 The first reason is they are generally uncorrelated with the market. With overall equity valuations artificially inflated by central bank money printing, it would make sense to own assets ((AN NOL IS AN ASSET)) that are uncorrelated with the broader market in the event of a correction. ((Most of us are not educated in this area--I am -- THIS IS MONSTER for our company))
#2 The second is that these companies are typically overlooked by most investors because the deferred tax assets associated with the NOLs are almost always fully reserved against with a valuation allowance. In other words, these assets are not present on the balance sheet. (((THIS IS HUGE FOR THIS COMPANY!!!!!
#3 The final reason is that these types of investment typically do not take a long time to analyze and research. The process is very quick, simple, and relatively easy for the potential return you can hope to realize.... ((Thus , undecided investors are assisted in their decision making))
Millions of dollars in taxable profits ,, nullified by the NOL is passed on to directly affect the PPS--
