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Re: GoldSilverMines post# 5918

Wednesday, 07/18/2007 12:34:42 PM

Wednesday, July 18, 2007 12:34:42 PM

Post# of 6752
Well, you are very wrong: you are simply saying that every reverse merger with 1000%+ gains we have witnessed should haver never been happened!

Reverse merger in fact works this way:

1) the new management buy the controlling interest, and stop. They don't buy anything on the open market

2) the stock price goes up because of the new company assets, revenues and business plan: people starts buying shares on the open market because they are interested in the new company

3) the new company rises the Authorized shares count and dilute while people is buying

Just see how USSE and every other reverse merger with huge gains worked out.

Moreover, a pink shell is worth 250K dollars. A reporting otc shell is worth 500K dollars. That's why this shell is already underpriced (as you can get control of this with less than 200K dollars).
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