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[QUOTE]Originally posted by Doniboy: [QB] Purl Gurl, I know you know your stuff, and like I said, I am out anyway. But I am pretty sure that this will open at $15. Whether or not it will stay there is the big question. With all the bashing from radio stations and sites, I seriously doubt it right now. Still the fact remains that the price will not be arbitrary. It (supposedly)is based on audited financials which place the book value at $7.21. Rufus said that he would have been allowed to price it up to 3 times book value. Many have compared this to an IPO, though it is not, where a new comapny is formed and thus a price is set. Which would basically make the share price right now meaningless (I know it sounds weird). I did find this article that discusses valuation of a stock after a Reverse Merger (oddly enough it says that book value is not the real indicator): Establishing The Initial Stock Price - Once a reverse merger is completed, a broker/dealer must decide to make a public market in the stock. The market makers, in conjunction with the company, determine the initial price for the stock. Perceived value, the "sex appeal," track record and potential growth of the company usually have more to do with initial pricing than earnings multiples and current book values. Competent investor relations and supportive market makers as well as management’s ability to relate the company’s potential to investors are of key importance.Ultimately, the public market acceptance of the company will determine the market price for the stock. full link http://www.venturea.com/shell.htm [/QB][/QUOTE]
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