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Re: malamutus post# 71

Saturday, 09/25/2010 6:28:13 PM

Saturday, September 25, 2010 6:28:13 PM

Post# of 102
basically, like you said, all you can do is buy a small
amount, then wait and hope for a reverse merger.
It won't just "go away", as some bk's do, those are thoroughly unregistered (cancelled). This is different, the shell is still registered and will continue to be open for trading.
Still, it could be months/years before a reverse merger into it takes place. It does have an attractive share structure and is clean, which makes it a fairly attractive shell. There is at least some leftover institutional ownership as far as I can tell judging by the past filings and comparing that to the trading volumes since they were remitted, although that is no guarantee in itself. I wouldn't want to encourage anyone to buy this.
Still, I did buy it with trading profits from elsewhere, and accumulating a small portfolio of quality shells is a strategy which often pays off. All you need is one to hit. There is no more explosive play on the stock market than already owning a shell that is acquired by a legitimate company which is going public. Always consider market capitalization when buying shells you want a low floater that will move and can absorb a new company without massive dilution. It will move faster if there is news than a shell with say 400 million shares would. Typically shells sell for as low as 40,000 to as high as 300,000. This market cap now is under 100,000. Market makers will see the o/s and won't be able to make large blocks available, which would slow down the price movement. This was asking 0044 on the little run it had. But the market makers are also not going to support the bid very much, as you can see with the 0009 sell.
Seriously though, if you ever need the money before something happens you are unlikely to get all your money back unless there is a buyer.

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