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Microcap & Penny Stocks : MIDL .... A Real Sleeper
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To: one_less who wrote (1148)6/19/1998 7:50:00 PM
From: Kurt N  Read Replies (3) of 7039
 
>>What is it about the structure of the MIDL shell that gives you this confidence?<<

I can't answer for Gary, but this is what I like about the MIDL shell.

1. Small public MIDL float: ~1 million shares.
2. Small MIDL shares outstanding: ~2.5 million
3. Clean-sanitized shell (with exception of some housekeeping/cleaning to be done with recent events) with no debt.
4. Warrants available for raising capital, beauty is that it comes from shareholders vs. going to an outside source (company gets $.50 for each warrant exercised)
5. Recovery of shares that dan fisher illegaly sold or recovery of money.
6. Preferred stock for sophisticated/institutional investors.
7. Relative safety preferred stock provides (usually can be bought at a 30-50% discount to the common. ie. buy 35 MIDL and compare that to 1 MIDLP). Even if the common were at $.40 at conversion, I'd still be making money on the MIDLP that I bought at $20 with the 50% dividend.
8. Dividends on the preferred.
9. Small amount of shares outstanding (important for a reverse-merger)
10. Small amount of shares outstanding.
11. Reporting company

In short this shell is attractive to long term investors, has something attractive for institutional investors (MIDLP), has a way of raising money (MIDLW), and the amount of shares outstanding and no debt is attractive to the company doing the reverse-merger without having to modify the stock structure.

Right now we are waiting for something to be filled (as good as DF-144 or better) inside the shell. As long as the filling is of a good type (profitable, revenue/profit potential of something similar to DF-144 (or DF-144) in a different industry) eventually the shell/filling will be ~$5+ if not more (IMO).

Kurt
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