To answer your questions ... companies RM in order to avoid the longer and more expensive process of IPO'ing.
The best set scenario is to look at a shell company that has limited to no debt; a share structure that is ensuring that the acquiring company has full control; a small float.
Bankruptcy shells are gold, as they have no debt and the share structure can't be changed as long as they have the Q sign.
Some companies are specialized in buying up the shell and provide their services to the acquiring company. Lazar is one of them.
This brings me to CERPQ : CERPQ has a limited float and O/S. Is debt free.
Is an ideal set up for a company who wants to enter the market here.
Now, knowing that the float the past month has been bought by (most likely) the acquiring company; Lazar and a bunch of people like me, their will be pressure whenever something comes up ...
Regardless if we're talking the big Chinese multinational or a smaller company, this one will go once news gets out it RMs. How high ? No-one can tell.
What else ? If you buy these, play them, don't marry them. I mostly sell if they go between 250 and 500%. Sometimes I re-enter (I did with CERPQ - the first run up I sold a portion and am now riding free shares). Don't hold too long or you can get burned.
One good example : XOG ... RMs in a billion $ company. Just look it up.
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