Replies to post #51630 on Conversion Solutions Holdings (fka CSHD)

[letstrade]

Great Post Valis, everyone should read it. It goes to
show that everyone that says thet the price can not be reset does not know what they are talking about.

[formerkimemp]

Valis, IMO Schawb and their letter to investors to borrow shares in conjunction with their prefered MM along with Rufus will work together to set the price at the desired level, scratching each others back if you know what I mean JMHO

[IRISHBULL]

"Once a Reverse Merger is completed, a broker/dealer must decide to make a public market in the stock. The market makers, in conjunction with the company, can determine the initial price for the stock."

OK, now this is where I'm coming from. The two companies merged. The new cusip number was issued, the new symbol was issued, the shares were issued and its trading now under the newly merged surviving company symbol. The statement above has already happened. This is the PPS of the newly merged company.


OK good luck all.

PS don't forget this part:

Perceived value, track record and potential growth of the company usually have more to do with initial pricing than earnings multiples and current book values. Competent investor relations and supportive market makers as well as management's ability to relate the company's potential to investors are of key importance. Ultimately, the public market acceptance of the company will determine the market price for the stock.

[jigfish]

Valis, correct me if I am wrong, but hasn't the merger been completed and the price set at approximately .73 as we speak?

[schadenfreude]

You're overlooking a key distinction. In some reverse mergers, the public shell is actively traded; this was the case with the FHAL shell. However, many public shells are dormant; they have either never traded or haven't done so for a period of time. There are no market makers registered to trade the stock. When these dormant shells start to trade, they have to open somewhere. This is where the paragraph you quoted comes in:

Once a Reverse Merger is completed, a broker/dealer must decide to make a public market in the stock. The market makers, in conjunction with the company, can determine the initial price for the stock. Perceived value, track record and potential growth of the company usually have more to do with initial pricing than earnings multiples and current book values.

Again, FHAL was not a dormant shell. There were market makers making a market in the shares and a trading price had already been established when the reverse merger occured. The paragraph simply doesn't apply to CSHD.

FHAL was around .10 prior to the merger. After the news was announced, market participants including market makers and individual traders bid up the price of the stock. That was the "reset".