Comments on: Shell out for reverse mergers http://greenbackd.com/2009/10/07/shell-out-for-shells/ Deep value, contrarian, and activist value investment strategies Sun, 27 May 2012 15:12:48 +0000 hourly 1 http://wordpress.com/ By: Rick Houraney http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-4955 Wed, 17 Nov 2010 15:32:10 +0000 http://greenbackd.com/?p=2540#comment-4955 Fully reporting OTC/BB (ALFE) Shell for sale..
$250,000. Must close by 12/01/2010

Please contact;
Rick Houraney
561-542-3238
email; drexalinv@gmail.com

]]> By: gf http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-2204 Mon, 26 Oct 2009 08:52:21 +0000 http://greenbackd.com/?p=2540#comment-2204 “Through various methods, scam artists manage to accumulate large positions in the free trading shares of the shell company. An RTO is consummated with a marginal private company, and the scam artists put together a massive publicity campaign designed to create activity in the stock. Unrealistic promises and absurd claims of corporate performance find their way to the public. The enhanced trading volume allows the scam artist to dump his shares on the unsuspecting public, most of whom eventually lose their money once the newly formed public company fails. This scam is commonly known as a “Pump and Dump”. ”

http://invest-faq.com/articles/stock-reverse-merger.html

]]> By: gf http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-2203 Mon, 26 Oct 2009 08:51:29 +0000 http://greenbackd.com/?p=2540#comment-2203 this post fails to mention that a lot of these RM with shell companies are pump and dump schemes. that will explain why a large portion of them rise so quickly but have poor performances in the long term. either way, very interesting post.

]]> By: greenbackd http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-2018 Wed, 07 Oct 2009 23:30:26 +0000 http://greenbackd.com/?p=2540#comment-2018 You could screen by market cap. They are likely to be the smallest of the microcaps.

]]> By: greenbackd http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-2017 Wed, 07 Oct 2009 23:28:47 +0000 http://greenbackd.com/?p=2540#comment-2017 One possibility is just waiting until an announcement is made. While the majority of the gain seems to occur in the first few days, Figure 9 shows that there is substantial abnormal gain between day 5 and day 90. If you buy in the first day or so after the announcement and sell prior to say day 90, it looks like you could see worthwhile returns.

]]> By: shaun noll http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-2016 Wed, 07 Oct 2009 21:10:25 +0000 http://greenbackd.com/?p=2540#comment-2016 WOW, this is one of the most interesting blog articles I’ve read all year. what an amazing study of a strange section of the market. anyone have any idea of how to screen for these? any investors here have any experience with these?

]]> By: Zack http://greenbackd.com/2009/10/07/shell-out-for-shells/#comment-2014 Wed, 07 Oct 2009 13:40:16 +0000 http://greenbackd.com/?p=2540#comment-2014 Nice work dissecting the research literature. But how to locate a shell “more likely to be acquired”? Fundamental research wouldn’t discern between shells. Follow the PIPE guys?

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