May God Bless All.

WHAT IS A SHELL STOCK?

Basically, a Shell Stock is a public company that no longer has any business! It retains its capital structure and SEC reporting status with the intention to "reverse merge" into a non-public company with an on-going business. This merger creates a new company that is both public and generating revenues.

Why would a private company with an on-going business want to reverse merge into a Shell Stock? The goal of the private company is to become a public company. There are many benefits in becoming a public company. The traditional method of becoming a public company, via an IPO (initial public offering) can be very expensive and time consuming. Becoming public via a reverse merger is less expensive and much quicker.

SHELL STOCK STOCK STRATEGY

Most investors buy Shell Stocks when there are rumors of a potential reverse merger. They become impatient when the reverse merger does not happen and sell . . . usually at a loss.

So what is the best Shell Stock strategy? Probably it is best to buy several Shell Stocks and forget about them. Hopefully you will resist the temptation to sell when things get boring, increasing your chances of participating in a reverse merger - sometimes producing huge returns.

quote:

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http://www.shellstockreview.com/ssrWhatIsSS.htm

There are many benefits in becoming a public company.

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The primary benefit is the ability raise capital by issuing more stock.

Which can have a negative effect on the stock price if the company is not using the new capital for legitimate business expansion. You can often see reverse-merged companies that continue to pour shares into the market only for the benefit of the insiders. The trick in investing in shells (filled or waiting to be filled) is finding the reverse-mergers which are done by legitimate businesses as a serious means to raise capital to grow the business.