Global Spill Management (GEGI) 3/8 bid, 7/16 ask,
traded on the NASDAQ Bulletin Board. GEGI is what one
would call a "shell" corporation, that is, GEGI has no
current business operations and is looking for an acquisition/merger.
The advantage of a "shell" is that it allows a usual
reverse-merger of a private business into a public entity
for lower costs and much faster than the usual procedure
that must be under-taken when filing an IPO with the SEC.
During the past 5 years or so, the availability of
"shell" corps have become more scarce and, for that reason
alone, it has made "shell" corps like GEGI extremely
valuable.
The reasons why we believe that GEGI offers investors a
very attractive upside potential with a very limited
downside is:
1) The "shell" is ready for sale.
2) The size of the issue is extremely attractive; that
is, only 2.9M shares outstanding. It is estimated that
there is over 1000 shareholders. The stock price has, from
95 to present, ranged from a high of 45 to a low of 1/8.
This alone is extremely bullish, due the fact that most
shareholders purchased this issue when it was in full
operations at much higher prices.
When an acquisition is announced, this stock will find
little resistance on the upside which, of course, is what
we like!
3) At present, there are at least 14 market-makers in
this issue. This is very positive for visibility, as well
as liquidity.
4) At present GEGI has $11M in NOL. This could be
extremely attractive for a merger candidate, due to the
ability to reduce taxes for many years.
5) GEGI has an asset that could be sold and adds to the
attractiveness of the "shell." The property is located in
Camden, NJ, on the water front. There is a building there,
as well as 10 acres of land. On the books, this property
is valued at $0.00. This is very attractive.
6) GEGI has sued a firm, Craig (CRG) in FL, for the sum
of $677K. We do not know whether any of this money will
ever be recovered but, if it is, shareholders of record
prior to a merger will receive any funds that are recovered
prior to a merger, as well as after a merger is announced
(one must be a shareholder now in order to take advantage
of this unique twist).
7) GEGI is also the plaintiff in litigation against
certain parties, with respect to the illegal sale of two
S-8 registration statements filed with the SEC during
8/2/96 - 9/19/96. The amount of shares that were sold
illegally is in excess of 1M shares. The actual amount of
money that potentially could be recovered, is in excess of
$3.8M (this could also include the purchase of large
amounts of stock from the open market).
Again, any monies that are recovered would be
distributed to shareholders of record prior to an announced
merger or acquisition. This works out to be over $1.00 in
cash/share. This has the potential to be extremely
rewarding for shareholders.
8) GEGI is fully reporting and is current with its
filings. The latest 10K will be filed by the 10th of Sep
97.
9) GEGI has announced that numerous merger candidates
have been located and reviewed and that during the 4Q97 a
choice will be made. The current shareholders will own at
least 20% of the new company.
10) GEGI had a 30 for 1 reverse stock-split during Jun
96.
11) The Camden property is worth at least $350K. Upon
sale of the property, shareholders of record prior to a
merger are entitled to any monies that are received from
the sale.
12) If all monies are recovered, the amount equals over
$1.50/share, which would be distributed to shareholders of
record prior to an announced merger.
When one considers all the above positives that are
presented, one has to take a serious look at the potential
upside - not only dramatic stock appreciation but also the
potential of a monetary distribution.
This situation is not for everyone but, for those that
like calculated risk investment opportunities, this one has
all the thrills!
For additional company information: (212) 755-1122.
Any comments
Rick |
