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Microcap & Penny Stocks : Private companies using reverse process to go public -- Ignore unavailable to you. Want to Upgrade?

To: P.S.N. who wrote (6)	4/28/1998 1:48:00 PM
From: Chloe R	Read Replies (1) \| Respond to of 62

Thanks for responding PSN. Yes, companies that meet the criteria ard very hard to find. There are many capital networks around the US which list private companies looking for capital (most are pretty expensive to join). There are also some good Internet sites that are paid to present companies. Potential investors can view the sites for free. I search through these regularly and pay specific attention to the exit strategy. In most cases, those that list a reverse merger as the strategy or as an option have at least put some thought into it. If, and only if, the company has a viable product or service do I then dig deeper to see how serious they are about doing a reverse merger. I ususally only invest when a letter of intent or definitive merger agreement is signed. The product or service (and management) is key. However, I'm ususally looking at something with a low private valuation that can be greatly enhanced when typical public p/e ratios are involved. Even companies with little or no earnings can jump up amazingly in price once they become public. I also make sure that the insiders are restricted to a great extent. No point in investing just to be dumped on when it starts trading. Let me know if you find anything. Clo