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Re: 032798 post# 175

Sunday, 03/28/2010 2:21:03 PM

Sunday, March 28, 2010 2:21:03 PM

Post# of 696
032798...share reorganizations, differing viewpoints......

"It appears we are coming from 2 differing viewpoints here. Maybe one of us are wrong. Maybe none of us. I don't think you understand the foundation of my belief for a possible reorg. It was the same basis for velocity and associated media."

I think I understand fairly well your viewpoint on CCKH specifically and share reorganizations in general. You are coming from a standpoint/viewpoint that many IHUB members believe deeply in: All reverse splits (reorganizations) are negative things.

My viewpoint differs from that because I learned a long time ago that you simply can't take a brush and paint every reverse split situation the same color. Just because a shell does a reverse split prior to a RM that doesn't automatically make it a bad shell/investment. And just because a shell doesn't do a reverse split prior to a RM that doesn't automatically make it a good shell/investment.

You cite the VOIG/GNZR reorganization as if it were a bad thing. I think it might be a bit premature to criticize that reverse split until you actually see what transpires. As of right now the GNZR shell I own is basically the same as the VOIG shell I owned prior to the split, just an adjusted share structure.

Generally what determines whether a shell investment turns out to be successful are two things: 1) the exact nature/extent of the dilution that accompanies the RM deal (accretive or negative dilution), and 2) whether the RM deal is structured as a fully-valued or an undervalued type of RM (fully-valued meaning that if the RM company is valued at X dollars you issue X dollars worth of the shell shares to the RM company).



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