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Shell Stocks - How to profit from shell stocks - penny stocks

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Old 03-22-2008, 03:11 PM
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Default Shell Stocks - How to profit from shell stocks

What is a Shell Stock?

A Shell Stock is a publicly traded company that has no operating business. Many of them trade for pennies and are thought to be worthless. But after completing a Reverse Merger, they can explode in price and increase in value by 10 times, 20 times, and possibly over 100 times their original share price!

The potential return of a Shell Stock can be enormous! Imagine buying a tiny $0.0312 Shell Stock that traded as high $50 six weeks later! A $1000 investment would have been worth $1,600,000 at its high!
  • Public companies are valued higher than private companies.
  • Making acquisitions with stock is easier and less expensive.
  • Stock and stock options are useful in attracting quality employees.
  • Employee stock options have more value.
  • More liquidity for founders, minority shareholders, and investors.
  • Added prestige and visibility with customers, suppliers, employees and the financial community.
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Old 04-01-2008, 04:55 PM
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A Reverse Merger is a technique that allows a private company to become an instant public company. This alternative method for completing an IPO (Initial Public Offering) is the catalyst that makes the price of a Shell Stock explode!

There are two types of Shell Stock. Reporting and Non-Reporting. Reporting reports quarterly to the SEC. They are audited annually. Non-Reporting forgo any reporting at all to the SEC. Keep this in mind. The SEC will always inform you about the doings of a Reporting Stock. On a Non-Reporting Stock you can only go by the amount of information that is given by the company
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