If you think trends only belong to listed stocks you’re wrong. Every now and then a fad emerges in penny stocks.
In the prior months, for example, every penny stock company tried to associate with the rising price of gold by claiming some sort of gold interests. Whether these interests were legitimate or not did not matter; investment flowed in leaps and bounds, even for the least likely gold-vested company.
In 2011 it seems that reverse mergers (RM) are ‘in‘. They’re hip, they’re fly, and they’re now. But what are they?
[Reverse Merger Is] The acquisition of a public company by a private company, allowing the private company to bypass the usually lengthy and complex process of going public.
In other words, while you are a shareholder of a shell stock, your shares are worth little to nothing. But when a private company acquires that shell to go public (i.e. Reverse Merger) your shares are worth much more than previously.
It’s runners like Salamon Group Inc. (Pinksheets: SLMU), which gained over 400% in just days, that give reverse mergers a golden legacy.
AcumedSpa Holdings, Inc. (AMSZ.PK), another RM story, exploded 315% on Friday.
And in all this lies a lesson: look for Reverse Merger candidates while they’re still hot and ‘in’.
Vanity Events Holding, Inc. (VAEV.OB) recently completed a Reverse Merger with Shogun Energy, Inc. However, it continues to fly under the radar as no official announcement was made, rather, an SEC filing revealed the event. Alex covers the essential details on Vanity Events Holding (OTCBB: VAEV) in our BUZZ ON THE STREET segment here.
We’re inviting shell-hunters and skilled reverse merger detectives to share their thoughts, research, and ideas on where the next big Reverse Merger will take place.