I am watching your picks doing so well and trying to understand what characteristics you look for in choosing your plays? (btw Congrats! and I'm also enjoying EIGH with you)
For instance here is a company that is doing a r/s and will have relatively a small public float but over 90% controlled by insiders. (HMDI)
On February 3, 2010, the Company and Delta completed the reverse merger pursuant to which Delta was merged with and into Hammonds. In connection with the Reverse Merger of Delta into a wholly-owned subsidiary of the Company, following the effective date of the Reverse Split, the Company intends to issue shares of Common Stock to the present stockholders of Delta as follows: (i) 22,186,572 post-Reverse Split shares in consideration for American's 51% equity ownership of Delta, and 10,000,000 post-Reverse Split shares in consideration for American converting $872,353 in principal and accrued interest of debt payable by the Company to American; (ii) a total of 21,316,510 shares to Robert W. Derrick, Jr., a newly appointed director of the Company as well as Delta's president and a director of American and Ron Burleigh, a newly-appointed director of the Company as well as Delta's vice president, in consideration for their 49% equity ownership of Delta; and (iii) 9,607,843 post-Reverse Split shares in consideration for Messrs. Derrick and Burleigh extending their employment agreements for five years in addition to the balance of their current employment agreements. Following the Reverse Split and Reverse Merger, American will own 32,859,935 shares of Common Stock, representing 48.2% of the Company's total outstanding shares and Messrs. Derrick and Burleigh, the owners of the noncontrolling interest in Delta, will own 30,924,353 shares of Common Stock, representing 45.4% of the Company's total outstanding shares. All other stockholders of the Company will own 4,357,962 shares of Common Stock, representing 6.4% of the Company's total 68,142,250 outstanding shares.
