Thanks for the link. I guess next week will be the moment of truth.
I went down the checklist to compare what has transpired with FCCN.
How to value a Shell Stock
****************************************MAJOR CONSIDERATIONS****************************************
VERIFIED SHELL STOCK LOOKING FOR AN ACQUISITION: it should be actively looking for a reverse merger. Verification can come from SEC reports, news releases, or verbally from company management.
EXPERIENCED MANAGEMENT: management must understand the mechanics of a reverse merger and know a good business opportunity. If management is not experienced, it is imperative they are working with an experienced consultant.
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.
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.
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.
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.
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.
****************************************MINOR CONSIDERATIONS****************************************
TAX LOSS CARRY FORWARD: the new company can offset future net income with the Shell Stock's Tax Loss Carry Forward.
EXCHANGE LISTED: it is better for the Shell Stock to be listed on a stock exchange (NYSE, AMSE, NASDAQ, OTCBB). But, there are some quality Shell Companies that are trading on the Pink Sheets.
****************************************INDICATORS****************************************
INCREASED VOLUME/PRICE: increased volume and price with no news may be an indicator of a potential reverse merger. Information on a reverse merger sometimes leaks out and insiders/family/friends start buying before the reverse merger is announced.
CORPORATE ACTIVITY: cleaning up debts, law suits, and issuing reverse splits can indicate management is getting the shell company ready for a reverse merger.
AI
