Livingstone821/deet49...risk/reward, SUIP.....
Livingstone821: I don't have private message response capability, so I can only respond via public message. Personally, I will be disappointed if I walk away from my SUIP investment with anything less than a 10-bagger (which means I am looking for at least 30 cents).
When I am looking to make an entry into a shell (or significantly increase my position), I usually pay fairly close attention to net valuation (market cap + debt - cash) and share structure. Granted, there are a lot of variables involved in shell investing. Sometimes the shells that look least attractive on paper do extremely well, and sometimes it is the low market cap and low share structure shells that perform well. But I see nothing inherently wrong with focusing on a strategy of concentrating a person's shell investments on those shells that provide a theoretical optimal risk/reward: low net valuations with attractive share structures.
At my cost basis on SUIP, I purchased a fully-reporting bulletin board shell with a market cap around $200K. At that kind of valuation I consider the long-term downside risk to be relatively minimal, and the upside potential to be quite significant. As I have mentioned before, when you look around IHUB at the kinds of valuations that some shells are selling at it just gives you an additional appreciation of how fundamentally attractive a lot of these "value" shells like SUIP really are. Generally speaking, a $200K shell with 7M shares outstanding should offer a more attractive investment profile than a $10M shell with 100M shares outstanding.
deet49: Only time will tell if that share issuance is a harbinger of any upcoming significant/positive change in corporate activity. But it definitely caused my eyebrow to raise a little because it seems historically "unusual" for the Suns to focus on a single quarter.
If I recall correctly, back several years ago Tim Sun issued himself around 1+M shares in advance of a full year of services on the other company he is involved with (SGBL). But as far as I remember this SUIP issuance is the first time the Suns have issued any shares for services to be performed in just a specific quarter. SGBL will probably be filing its quarterly report in the next week or two, so it will be interesting to see if there is any similiar share issuance activity on that stock. If there is not a similiar issuance on SGBL, it will cause my eyebrow to raise a little more.
