Monday, September 07, 2009 9:59:17 PM
FROM istockanalyst.com in the article REVERSE SPLIT???? by Tyler Savery
"Talk about reverse splits all you want, but it will not get you anywhere fast. Investors should look at the metrics, the guidance, and what the potential of SDARS is rather than worrying about a comment on a stock split that does not change the market cap."
REVERSE MERGERS BY RALPH AMATO said below
"The “float” represents the shares that remain and are not sold to the new Buyer. These are usually the small investors who purchased shares in the original company that failed to perform. In most cases the new Buyer will reverse the stock (different from the reverse shell merger) so that these shareholders do not have enough shares to hurt the new company’s stock price (Buyer) should they decide to sell after the reverse shell merger has taken place."
"So why to the prices of Shells keep increasing? The two biggest reasons: 1) there is a short supply of quality Shells available in the marketplace and 2) there are a multitude of foreign companies that are seeking to be listed in the US."
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Some shell companies had even"failed" That was their history. Might seem like a valueless stock to uneducated. But shells such as TDGI have a LOW FLOAT. That means the new buyers get most shares for themselves. That is important for what buyers look for in a stock company. Many obscure or failed stock companies were bought out because buyers know it is an easier way to get PUBLIC. Also many ASIAN or EUROPEAN private companies are also looking to go public in the UNITED STATES. Merging cuts out the massive red tape and costs of going public.
"Talk about reverse splits all you want, but it will not get you anywhere fast. Investors should look at the metrics, the guidance, and what the potential of SDARS is rather than worrying about a comment on a stock split that does not change the market cap."
REVERSE MERGERS BY RALPH AMATO said below
"The “float” represents the shares that remain and are not sold to the new Buyer. These are usually the small investors who purchased shares in the original company that failed to perform. In most cases the new Buyer will reverse the stock (different from the reverse shell merger) so that these shareholders do not have enough shares to hurt the new company’s stock price (Buyer) should they decide to sell after the reverse shell merger has taken place."
"So why to the prices of Shells keep increasing? The two biggest reasons: 1) there is a short supply of quality Shells available in the marketplace and 2) there are a multitude of foreign companies that are seeking to be listed in the US."
************************************************************************************************************************************************************************************************************
Some shell companies had even"failed" That was their history. Might seem like a valueless stock to uneducated. But shells such as TDGI have a LOW FLOAT. That means the new buyers get most shares for themselves. That is important for what buyers look for in a stock company. Many obscure or failed stock companies were bought out because buyers know it is an easier way to get PUBLIC. Also many ASIAN or EUROPEAN private companies are also looking to go public in the UNITED STATES. Merging cuts out the massive red tape and costs of going public.
