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Global Spill Management (GEGI) 3/8 bid, 7/16 ask, traded on the NASDAQ Bulletin Board. GEGI is what one would call a "shell" corporation, that is, GEGI has no current business operations and is looking for an acquisition/merger. The advantage of a "shell" is that it allows a usual reverse-merger of a private business into a public entity for lower costs and much faster than the usual procedure that must be under-taken when filing an IPO with the SEC. During the past 5 years or so, the availability of "shell" corps have become more scarce and, for that reason alone, it has made "shell" corps like GEGI extremely valuable. The reasons why we believe that GEGI offers investors a very attractive upside potential with a very limited downside is: 1) The "shell" is ready for sale. 2) The size of the issue is extremely attractive; that is, only 2.9M shares outstanding. It is estimated that there is over 1000 shareholders. The stock price has, from 95 to present, ranged from a high of 45 to a low of 1/8. This alone is extremely bullish, due the fact that most shareholders purchased this issue when it was in full operations at much higher prices. When an acquisition is announced, this stock will find little resistance on the upside which, of course, is what we like! 3) At present, there are at least 14 market-makers in this issue. This is very positive for visibility, as well as liquidity. 4) At present GEGI has $11M in NOL. This could be extremely attractive for a merger candidate, due to the ability to reduce taxes for many years. 5) GEGI has an asset that could be sold and adds to the attractiveness of the "shell." The property is located in Camden, NJ, on the water front. There is a building there, as well as 10 acres of land. On the books, this property is valued at $0.00. This is very attractive. 6) GEGI has sued a firm, Craig (CRG) in FL, for the sum of $677K. We do not know whether any of this money will ever be recovered but, if it is, shareholders of record prior to a merger will receive any funds that are recovered prior to a merger, as well as after a merger is announced (one must be a shareholder now in order to take advantage of this unique twist). 7) GEGI is also the plaintiff in litigation against certain parties, with respect to the illegal sale of two S-8 registration statements filed with the SEC during 8/2/96 - 9/19/96. The amount of shares that were sold illegally is in excess of 1M shares. The actual amount of money that potentially could be recovered, is in excess of $3.8M (this could also include the purchase of large amounts of stock from the open market). Again, any monies that are recovered would be distributed to shareholders of record prior to an announced merger or acquisition. This works out to be over $1.00 in cash/share. This has the potential to be extremely rewarding for shareholders. 8) GEGI is fully reporting and is current with its filings. The latest 10K will be filed by the 10th of Sep 97. 9) GEGI has announced that numerous merger candidates have been located and reviewed and that during the 4Q97 a choice will be made. The current shareholders will own at least 20% of the new company. 10) GEGI had a 30 for 1 reverse stock-split during Jun 96. 11) The Camden property is worth at least $350K. Upon sale of the property, shareholders of record prior to a merger are entitled to any monies that are received from the sale. 12) If all monies are recovered, the amount equals over $1.50/share, which would be distributed to shareholders of record prior to an announced merger. When one considers all the above positives that are presented, one has to take a serious look at the potential upside - not only dramatic stock appreciation but also the potential of a monetary distribution. This situation is not for everyone but, for those that like calculated risk investment opportunities, this one has all the thrills! For additional company information: (212) 755-1122. Any comments Rick | ||||||||||||||
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