Reverse Mergers & Low Float Plays

[Potse]

MSAH(.047)...added to my position......

The new shares will be part of the control block(s), which means the legacy share position on MSAH will be about 6.9M shares. The potential certainly exists now from a legacy share structural/fundamental standpoint for a pretty nice return on this shell if the RM is reasonably good/interesting. Also, everything looks good with the timing of MSAH's 15-12G and SEC filings. So any incoming company should not have any major problem/difficulty getting a name/symbol passed through FINRA.

Since the above post (mid-May), I have added heavily to my position in the MSAH shell. I've been able to pick up a pretty nice amount of shares in the .026 -.047 range during the last 5 months or so. My current average is now under .0437 per share. That is a legacy share valuation under $310K if those 7M shares issued to David Duarte move with the control block in a reverse merger.

The usual shell/RM risks apply here, but from an overall quantitative and qualitative analysis, it just looks pretty attractive to me at this kind of valuation. If MSAH gets filled with a reasonably decent RM, I will be very disappointed if I walk away from this investment with anything less than a share price somewhere in the 20-30 cent range (a roughly $1.5-2M legacy share valuation).