To: cankster who wrote (32614 ) 3/2/2000 10:54:00 PM From: Veteran98 Read Replies (1) | Respond to of 150070
CCCZ mentioned by WallStreetWest again CASTELLO CASINO CORP.: STOCK FINALLY BREAKS OUT!!! Castello Casino Corporation (OTCBB: CCCZ: .58). We first put out a Stock Alert on this one several weeks ago when the stock was at .17. Although we featured it in the "Stocks to Watch" section in the weekly newsletter from time to time, we never mentioned it again because we had no new information. We still have no new information, but the stock finally broke out today and moved upward sharply. CCCZ is another opportunity to invest in a public shell. Those of you who were with us in October had the opportunity to get into our very first shell situation, Light Energy Management (YNOT, now FRLK) when it was in the .10 to .20 area. In the weeks that followed it ran as high as $25. That's right, $25!! For those of you new to shells here is some background information: Small investors very rarely get to participate in real IPOs until after they come out and start trading. By then it is often too late, as the IPO soars. The big brokerage firms and special high net worth clients get to buy into IPOs BEFORE the stock comes out. Little guys are shut out. If small investors get to participate it is only in small amounts like 100 shares. However, there is a "poor man's" way to invest in a "quasi" IPO. It is called a shell deal. Many new companies begin trading not through IPOs, but through merging with a public shell. A public shell is a publicly traded entity with a stock ticker symbol and no business activities. It is used as a vehicle for a private company to go public quickly, bypassing the traditional IPO and all of the bureaucracy that usually accompanies it. By merging with a public shell, a private company can go public in a matter of days rather than months. Though this kind of deal is technically not an IPO, the results can be the same: a soaring stock price once word gets out about the new company. The bad news is these deals are very hard to find. It seems that everything is kept quiet. What happens is that investors close to the private company find out about the deal first. So they and their friends and families start buying the stock, driving the stock price to high levels. By the time the rest of the investment community DISCOVERS the stock, it is already priced much higher than what it was as a public shell. If the new company is successful and profitable the stock price can soar higher yet, as the ticker symbol no longer represents a shell but a new profitable company! In a press release last fall, a CCCZ news release told us that the company was looking for a privately held company to merge with. This could be a HOT deal for investors who are looking for a high risk, but VERY high reward deal. We have seen these kinds of deals before from the outside and missed many opportunities to get in. One ran from pennies to $1.85 after it was announced that the merger was complete. Another one called SRAD ran from .10 to over $1 within a couple of days. That shell was eventually sold again and the Symbol became PAID. From there it ran to $7. YNOT ran from pennies to as high as $25. IIMC ran from .21 to $1.30. The next several days should be interesting for CCCZ!