Americrew Inc. (ACRU)

[Potse]

PHBR(.079)...finished accumulating a position......

I completed accumulation of a core position in the PHBR shell today with some purchases under the 8-cent level. I'm currently averaged in at .0551 per share, which represents a legacy share valuation on this shell of just a little over $600K (see post below for legacy share valuation explanation).

Although there is never any guarantee of a successful/profitable outcome, the risk/reward at this kind of valuation on a fully-reporting Lazar shell is extremely attractive. Especially considering the types of multi-million dollar legacy valuations we are seeing on shells in the recent weeks/months. Paying attention to the legacy valuation on your cost-basis position can help mitigate (to some extent) the potential negatives of any share structure change (split, dilution, etc.). And leaves you nicely positioned to participate if momentum buying develops.

It should be interesting to see what Ross Dimaggio has planned for this shell. He has spent many years in the business world and the area of investor relations, so he has probably developed a lot of connections to potential RM candidates. If he didn't purchase PHBR as a placeholder for a third-party type of RM, it would probably be reasonable to assume/guess that he might bring his private equity and venture capital company (Switchback Capital) public via this shell.

Legacy share valuation is something I have found quite useful in analyzing shells, and identifying undervalued opportunities in the shell market. It is a way to compare apples to apples, and oranges to oranges.

In the case of PHBR, the legacy shares are the roughly 11.1M shares that existed before Lazar awarded himself the 18M control shares. So at the current share price of .055, PHBR's legacy shares have a valuation of about $610K. As a very general rule of thumb, it seems like many of Lazar's shells reach legacy share valuations in the range of $1.5 to $5 million, and sometimes significantly higher.

I picked up another 30K shares in the PHBR shell today (currently averaged in under .046/shr). The usual reverse merger potential risks apply here (negative structural changes/reorganization, etc.), but the overall risk/reward looks pretty attractive to me.

It is unclear at the moment if David Lazar simply forgave the remainder of his $40+K debt, or whether he will receive some shares at some point. The general text of the 8-K filing did not address this issue. The detailed share purchase agreement would normally answer this question, but it was not included with the change-in-control 8-K.

Once this churning around the 5-7 cent area is completed, things should get a bit more interesting. I am initially targeting a move into the 15-20 cent range, which I think would be a reasonably achievable legacy valuation around the $2M area.

Ross DiMaggio LinkedIn profile.....

https://www.linkedin.com/in/ross-dimaggio-0b4b9219/

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