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Microcap & Penny Stocks : OTC Shell Search and DD... -- Ignore unavailable to you. Want to Upgrade?

To: Charlie who wrote (42)	2/21/1998 11:25:00 AM
From: Ga Bard	Read Replies (1) \| Respond to of 858

There are numerous shells and the shells are owned by someone. Most of them are not operating and looking for someone to come in and take the shell over. The deal makers look just like we do for shells of distressed companies that have min. debt and the main key is the stock structure. Heck most just reverse merger. The advantage is the cost of going public and avoiding the IPO senario which typically falls in price after it comes out. This way they are already setting on the bottom and already have a shareholder list which are happy as heck to have a profitable company come in or any company with potential. As far as Arcon and MIDL I am not really sure except they both are located in Dallas. Once the news release was made by MIDL with New Departure I guess Acron called and wanted to be acquired by MIDL because it was a holding company. I was disappointed that New Departure was sold out of MIDL but apparently the board of directors liked Acron and wanted to focus on one industry instead of a holding company. SEC lawyers generally know what shells there are iin the city where they reside to the best of my knowledge. I am not sure but New Departure and Arcon both Loved the stock structure and debt ratio of MIDL. How many there are I do not know but like FBRR which clearly states in their SEC filings they are basically out of business and looking for an acquistion to come in. Their debt is almost nothing and the stock structure was very well structured not to mention timely SEC filings so it made a great candidate. Please remember debt ratio is the key MIDL only had $46,000 in debt, CNHH has no debt that I know of and neither does FBRR. I have a list of potential shells that I like to follow. I read on an internet site somewhere a telcommunication company was interested in FBRR about a month ago. So I bought some of it and decided to just sit on it because it was debt free and stock structure which met my guide lines for a shell or distressed company. Look at Musicland it went from .60 to $10.00 and projected still to go to $15.00. Only way that happened was investors getting in for the long haul and minimum traders in it. This does require a lot of DD everytime a company comes into a shell. Sometimes in the course of the year shells have more than one acquistion changing the direction of the company. This is just my opinion but this is where I going this year ... more on fundamentals I can prove and less on faith in what an existing company tells me. Also I look to see if the shell has current timely SEC filings which I believe is another Key to finding a good shell. The good the bad and the ugly is there fully exposed. BTW AVBC & AETTQ were two bankruptcies that are debt free and ready to rock and roll. Are they shells well in a way they were. They were not operating but now they are. Typically a reverse merger as with a coming out of bankruptcy it takes a good 3 - 6 months for the turn around which is why once you know an acquistion has come in it is time to start accumulating. Now in bankruptcy they typically have not kept up the filings so really they were not good shells. However they came back with the same industry and/or product they were orginally focused on. BTW other stocks I like to watch for are small floats like INFE has aprox. 1M; MIDL has approx. 1.1M float, CNHH has approx. 480K float, etc etc etc Yopu cannot momentum trade a small float because it is hard to get enough stock to matter and you flat out cannot dump out. They fall to quick. Also if you accumulate you can't just dump out either for you trash the price. I have change this year and I am going more with this type of sleeper stocks. I know, I am moron, but unloved and unnoticed stocks are really great. One other note: ARET came out of bankruptcy and it was trading Millions and millions a day 6 months ago. Has anyone noticed that it does not do that much volume any more and is beginning to move more and more on small volume just like AVBC. I like it when the trading log shows smaller volume and tick ups over time. IRAE is another one that went up .125 cents on 2700 and I bought it. I am in the process of checking this one out too. This to me means it has been accumulated and the float is reducing with every dip as strong and long are patiently taking advantage of dips. I have three black eyes on stocks this last 6 months which I have learned from in my one year of on line trading. I know this trading logic is risky but no more riskier than following momentum traders, stock gurus, news letters, hypingPR/IR, over zealous CEOs etc. etc At least if makes sense to me to do it this way which is extremely profitable in my experience more so that guessing which momentum to follow. Oh well I will shut up because this is just my opinion. Happy Trading GaBard