Tuesday, June 26, 2012
Sunday, June 24, 2012
Wednesday, June 20, 2012
The outstanding shares are stock currently held by investors, restricted shares owned by the company's officers and insiders, and shares held by the public. Shell stocks with lower outstanding shares (a few million or less) are better than ones with shares in the hundreds of millions or more. There is less chance of a reverse split with less shares. If there is one, the reverse split will usually be smaller.
Some shell stocks are listed on the pinks sheets, while others are on the OTC. Shell stocks listed on the pink sheets are more risky investments, since they do not have to file current financial statements. You will know less information about them.
The pink sheets is where smaller companies trade. Stocks on the pink sheets can trade for just pennies a share or less. Many shell stocks are listed on the pink sheets. Stocks on the pink sheets do not have to file current financial statements.
It is important to follow the news on the shell stocks that you own all the time and check the prices often or else you may miss out on important information. Message boards and forums are great places for information.
The best time to sell a shell stock is after a reverse merger (if one does happen), or not too many months longer after a reverse merger. Some shares can always be kept longer. But since the stock was bought at a low price to begin with, the gains are already large enough for profit.
It is usually best to buy no more than 10,000 shares of any shell stock. If one is .005 cents per share, it would cost $50 for 10,000 share. If they are more expensive at .05 -.10 or higher, then just a few thousand shares or less would be a good amount. You never want to risk losing all of your money by just investing it in one shell stock.
The potential price increase of some of the highest shell stocks after a reverse merger have been well over 10,000%, with a much rarer high near 30,000%. Most though are only in the few hundred percent increse in share price or less.
A reporting shell stock company is better, since you can read the quarterly reports and find out more information on them. Shell stocks on the OTC are required to file current financial statements. The pink sheet stocks are not required to.