American Blind Pools

Written by William Cate


American Blind Pools For Asian Private Companies By William Cate Published July 1999 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

You'll earn twenty million U. S. Dollars packaging five Asian companies into American Blind Pools (ABP). Your private company client gets a million U. S. Dollars of expansion capital. Their private company becomes an American public company. Their company is insulated from local currency fluctuations because their stock trades in American dollars. The ABP's can offer Asian businesses substantial tax benefits. An ABP can qualifyrepparttar company for local Government business incentive programs.

A Blind Pool is a public shell company with money inrepparttar 112497 treasury. A shell is a company without assets. Public means a company that trades onrepparttar 112498 American Over-the-Counter Bulletin Board (OTCBB). These public stocks are quoted everywhere in Asia onrepparttar 112499 Internet. In our Workshop discussion, money means one million U. S. Dollars.

Your group needs cash to make an American Blind Pool program profitable. You must hire a firm to create local demand forrepparttar 112500 stock of your American Blind Pool companies. You'll need help creatingrepparttar 112501 American Blind Pools and arrangingrepparttar 112502 million-dollar European Private Placement. You should budget US$200,000 for each blind pool you create. It's probably more seed capital than your group will require, but it's wiser to over estimate costs.

Your group needs Asian private business contacts to sell your American Blind Pools. Most Asian businesses are undervalued. This is your opportunity to help sound local companies while making your fortune doing it. Your group's strong private company contacts must be with operating companies. The U. S. Million dollar infusion must ensure a million dollar increase inrepparttar 112503 company's profits. If your private company contacts are solid, you can pre-sell American Blind Pools (ABP) and reduce your overhead.

How will you structurerepparttar 112504 stock in your American Blind Pools? You'll need ten percent ofrepparttar 112505 issued stock to createrepparttar 112506 American Blind Pool. Your group will retain ten percent ofrepparttar 112507 ABP stock. You'll need to issue ten percent ofrepparttar 112508 stock to securerepparttar 112509 ABP European Private Placement underwriting. The Asian Private company will get seventy percent ofrepparttar 112510 ABP stock. The ABP's issued stock will be about 5.5 million shares.

Specialists for OTCBB & Nasdaq Stocks

Written by William Cate


Specialists for OTCBB and Nasdaq Companies By William Cate Published June 2000 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

An orderly market should berepparttar goal of every public company. Sharp rises or falls in share price attract regulators. A rapidly rising share price feeds upon itself and guarantees a share price collapse. A sharp drop in your share price creates selling barriers. When you attempt to revive your strong share price, your shareholders dump their stock. A steady upward climb, with minor downward adjustments, keeps shareholders loyal. The question isn't how high can you drive your share price? It's how long can you sustain your current share price?

One weapon in your share-price stability battle isrepparttar 112496 trading of your stock by a specialist. Most U. S. Stock Exchanges use a specialist to match buy and sell orders to create an orderly market. When buying and selling are relatively constant in any U. S. Stock Exchange company,repparttar 112497 market is orderly. Specialist can be overwhelmed with selling and this leads to a market correction or a Bear Market. Butrepparttar 112498 matching principle is sound.

The National Association of Securities Dealers (NASD) rely upon their brokers acting as Market Makers to act as specialists. This isrepparttar 112499 basis torepparttar 112500 Bid/Ask price structure inrepparttar 112501 OTCBB and Nasdaq Markets. The NASD policy doesn't work. The Market Makers goal is to make money for their brokerage firms. Share-price stability is counterproductive to profit, because it reduces trading. The Market Maker needs volume to profit from a stock. Trading volume infers instability as buyers go into a feeding frenzy or sellers panic. Feeding frenzies and panics kill public companies.

If your company trades Nasdaq orrepparttar 112502 OTCBB, your investor relations person MUST act as a specialist for your stock. They must trade your stock to maintain an orderly market in your share price. Your specialist's job is to maintainrepparttar 112503 current share price, not to drive it up. Your specialist should have a short term goal in restructuring your shareholder base. For example, EFHCF's current share price trading allows speculators to sell at a profit. However, my goal is to replacerepparttar 112504 speculators with investors who will holdrepparttar 112505 stock as it moves up. If I achieve my goal, I'll need less buying to sustain a higher share price.

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