To: StockDung who wrote (811 ) 6/14/1999 4:54:00 PM From: MKTsavvy Read Replies (2) | Respond to of 941
A clarification of the legitimacy of SHAL's business model for those who still question its potential for shareholders. Sara is a Venture Capital company somewhat like CMGI and SFE, but with the added benefit of also being a boutique investment banking company. That is where the Venture Banking concept came from. Previously before founding Sara, I was involved in 39 transactions, most of which went public. With the experience I have gained being involved in so many deals, I realized that three major obstacles would make a deal or stock crash. With this experience and knowledge, I made sure it became the backbone of Sara's business model and philosophy. Three main obstacles that are main problems with small cap companies: Company having a bad promoter or any promoter: Sara takes this promoter position and makes sure there are no outside promoters with any cheap stock that could oversupply the market. Company has a bad CEO: A bad CEO that does not treat his stock as real currency when the company is in the startup phase will end up causing an oversupply of stock in the market at low or no cost, which again will hurt a overall stock price and market value of the company. Sara Hallitex Corporation has representation on the Board of Directors for each SIPOD for at least two years, which will insure that the issuance of new stock is carefully controlled to protect all parties, especially the investors. Company has a bad deal structure or should not be a public company. Too many companies go public that maybe should not be public. Not all companies should be publicly traded. Sara makes sure that there is a good market potential for the company and that there are other companies in the similar industry that have success in generating investor interest. Management of Sara also makes sure that the initial company structure is sound and solid before taking it public. I believe that if you take all three of the above elements out of a potential public company, you have eliminated 80% of the risk in any small cap deal. Add the Sara support team with in-house financing, consulting, public relations and investment banking services and each company that comes through the Sara-IPO-Dividend program should have a much larger chance of success. We cannot guarantee that every company we get involved in will be successful, but we can guarantee that any funds raised will be fully invested in a solid real small cap company with all the additional resources at its disposal to ensure a very high chance of success. Looks good to me.