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Microcap & Penny Stocks : STRATEGIC SOLUT (Nasdaq:SSGI) -- Ignore unavailable to you. Want to Upgrade?

To: BlueCheap who wrote (32)	8/4/1998 2:09:00 PM
From: ComSolut	Respond to of 388

Malcolm Lindsey - Comments welcome Just some thoughts - Everything hinges on the "Company" which is privately held. Is the "Company" PROFITABLE?? Who knows - only the stockholders, employees, accountants, and lawyers of the "Company." Maybe everyone else if they are D&B rated and you know the name of the "Company." With preliminary due diligence behind them I would hope CEO John Cadigan knows as well. SOON - the money makers and other investors will know - hard to keep a secret. We can hope the price starts to move upward. That would be a positive sign that the "Company" is indeed bringing value to the stock (There can be other value than profits but without more info it would be even greater speculation than what I am writing now). The price will still be discounted until the merger is finalized. What is SSGI bringing to the deal. Try this - you are the owner of a privately held company. You want to become rich and access capital - LOTS OF CAPITAL. Another company in the local area has fallen on hard times. You meet and structure and arrangement whereby you keep control of a new entity merged from both. SSGI gets to stay in business with better cash flow and a chance to achieve profits from their line of work. The "Company" gets 10 million shares of publicly traded stock. The value of stock (BASED ON PROFITS FROM THE "COMPANY") rises to say $5 / share. You as owner of the "Company" are now $50 million richer and have access to public capital. This is a common reverse merger. Hopefully we as investors also profit with shares now worth say $5/share. CEO Cadigan is anxious to achieve shareholder value and I HOPE this merger will produce. I believe he wants SSGI back in the low teens. His merger with UST was a disaster. Hopefully, the second time around will be better. We can also hope that UST will add assets to SSGI but I am skeptical. UST also did a merger and plans to go public. Any info appreciated. SSGI has revenues but profitability has been a problem. Contracts keep getting signed, which is great but I believe the CEO was running out of time and money in trying to turn the corner. The merger buys him the needed time and input into a larger company. Again - two ingredients are needed - the merger must finalize - and the "Company" must bring value (profits) to the merged entity. Final value determined by outstanding number of shares and p/e ratio. Please (anyone) add comments and INFO. An exchange of ideas will help everyone. Good Luck.