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bluediamonds

09/06/06 10:43 PM

#67946 RE: skeptic0 #67930

CSHD: How to value a Shell Stock (very interesting)

FWIW (I added the "Hit:" below before the sections that were in blue in the original post, to make it easier to read the comments by HititUP)

Today, 08:09 PM #627
HititUP
HSM Addict


Join Date: Mar 2006
Location: Chicago
Posts: 1,915
Since it's the afternoon I thought I'd take a look and see if CSHD meets these little requirments.

Ofcourse, these are just the opinions and light facts of SSR.com, but what the hey, lets take a look....Me in Blue. (see the blue at http://www.hotstockmarket.com/forums/showthread.php?t=41987&page=63).

How to value a Shell Stock

Hit: In this case CSHD

http://www.shellstockreview.com/ssr-...ell-Stock.html

MAJOR CONSIDERATIONS

VERIFIED SHELL STOCK LOOKING FOR AN ACQUISITION: it should be actively looking for a reverse merger. Verification can come from SEC reports, news releases, or verbally from company management.

Hit: Well we did get a PR about the reverse merger, but I don't think anyone was expecting it. "Actively looking" ... Rufus did say it was put on their table at the right time and place.. so maybe...

EXPERIENCED MANAGEMENT: management must understand the mechanics of a reverse merger and know a good business opportunity. If management is not experienced, it is imperative they are working with an experienced consultant.

Hit: Mr. Harris has facilitated and originated projects, corporate and bond financing for more than 10 years.

Mr. Stanley has facilitated and originated projects, corporate and bond financing for more than 15 years.

John Walsh – Director :His experience includes more than 18 years with Hoechst Corporation, a Fortune 100 Company, with ever-increasing responsibilities. He last served as Director of Financial Administration at the Hoechst PVC Film Division.

Mr. Horton has served State Government as Director of Internal Audits and he is currently the Director of the Division of Licensing & Certification, which is responsible for the monitoring and regulation of all of the state’s hospitals and health facilities


hmm....


SEC REPORTING: it must report regularly to the SEC. This is known as a "reporting company." We want to be able to verify information about the company from public/legal filings . . . not by word of mouth or rumor. Believe it or not, there are public companies that are non-reporting.

Hit: Rumors galor..however no issues with reporting :http://www.nasdaq.com/asp/quotes_sec...&selected=CSHD


CLEAN: it has little or no debt, no pending law suites, and little or no outstanding convertible securities (preferred stock or warrants). We don't want anything that can complicate the reverse merger.

Hit: CSHD is a holding company, has barely anything at all, especially inventory. However we do have cashed credit from the bonds, which has specific requirments in the ANNEXs of the 8k. As far as prefered stock, 144's have been off the hook the last few days. 18 total so far. One with a whopping 585k. Makes you wonder why they waited until now to file? Does OurFraud's and his fairies count toward complications?...well look at PPS..hovering around a dollar for how many weeks? I guess not lol.

SMALL NUMBER OF OUTSTANDING SHARES: the smaller the number of outstanding shares, the better. A smaller number of outstanding shares lessens the chance of a Reverse Stock Split. A Reverse Stock Split can lessen the chance of price appreciation.

Hit: Compared to other companies the OS is incredibly small.
Reverse Stock Split is not in the picture, Harris DID say a Forward Stock split is a possibility... and that might not happen long after a reset if we get past $50

LOW MARKET VALUE: basically, this is the buy low sell high rule. A Shell Stock with a low Market Value will have a greater chance of price appreciation than one with a high Market Value. (Market Value = price X shares outstanding). NOTE: the Profile List by Market Value sorts the Shell Companies from low to high Market Value.

Hit: Some with a .07 entery, some even at $1.60.. It doesn't matter.. when you sell at 3-4 times book value

CASH ON HAND: some Shell Companies have cash remaining from their previous business endeavors. Having cash to fund the new company's business plan will attract high quality candidates.

Hit: Only a few billion... ehh...

MINOR CONSIDERATIONS

TAX LOSS CARRY FORWARD: the new company can offset future net income with the Shell Stock's Tax Loss Carry Forward.

Hit: Shell Stock's Tax Loss Carry Forward= "many shell companies carry forward what is known as a tax-loss. This means that a loss incurred in previous years can be applied to income in future years. This shelters future income from income taxes. Since most active public companies become dormant public companies after a string of losses, or at least one large one, it is more likely that a shell company will offer this tax shelter"
Need the 10k to know what's up here...


EXCHANGE LISTED: it is better for the Shell Stock to be listed on a stock exchange (NYSE, AMSE, NASDAQ, OTCBB). But, there are some quality Shell Companies that are trading on the Pink Sheets.

Hit: We all know the answer to this...

INDICATORS

INCREASED VOLUME/PRICE: increased volume and price with no news may be an indicator of a potential reverse merger. Information on a reverse merger sometimes leaks out and insiders/family/friends start buying before the reverse merger is announced.

Hit: Well that news is long and gone, but recent buying from .80 - $1 for no reason, no PR, no anything is interesting. Also a fake C&D and we're going back into upper .90's.. well over 150-200k buy vs. sell... hmmm.. you do the math.
__________________
Hititup Proud supporter of the Cindyyoohoo is a Loon Foundation. "Hey, we can't all do our own DD. "

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Last edited by HititUP : Today at 08:14 PM.

http://www.hotstockmarket.com/forums/showthread.php?t=41987&page=63
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Zorro

09/06/06 11:01 PM

#67959 RE: skeptic0 #67930

LOL.I love Robin's sense of humor.