Why are Reverse Mergers Often the Victims of Short Sellers?

Written by Joseph Quinones

There is a great deal of abuse going on inrepparttar OTC Bulletin Board Market and a lot of money is being made as result of it. Regulators are trying to deal withrepparttar 150126 problem but are unable to put a halt to it, unless they take drastic steps which will be detrimental torepparttar 150127 small and micro-cap market.

The small and micro-cap market is an essential part in bringing small and mid-size companies public through Reverse merger and Regulation D (504) offering, these arerepparttar 150128 two most popular methods used by small and mid-size companies to go public.

This two avenues are prefer by small and mid size companies because they simpler and less expensive thanrepparttar 150129 traditional IPO, It can be refer to as a simplified fast track method by which a private company can become a public company.

I describedrepparttar 150130 process in detail how small and mid-size companies can go public in previous articles, if you miss them, you can email me and I will be happy to explain it.

I have over 25 years of experience inrepparttar 150131 securities industry as market maker and trader. In my own brokerage firm and with a couple ofrepparttar 150132 largest wholesalers in Wall Street. I believe my experience qualify me to write onrepparttar 150133 subject with clarity and honesty from a birds eye view.

I believe in short selling as a legitimate way of providing liquidity torepparttar 150134 market as an essential part market making, that is not what I am referring to.

A short position is established when somebody sells a stock they do not own hoping to be able to buy it bac at a later day for a lower price.

There are several reasons why selling shortrepparttar 150135 stock of companies that have gone public through a reverse merger is profitable and easy, I will identify them and suggest ways that this can be stopped once all for all without affectingrepparttar 150136 legitimate short seller who are willing to sell and bearrepparttar 150137 risks associated with carrying a short position. Reason number one (1). Corporate shells, in order for an operating private company to go public in a Reverse merger it must merger with a public shell. A public shell is what remains when a public company is bankrupt or liquidated, also some shell are created as Blank Check companies,

A Blank Check company has shareholder and maybe some cash in its books but nothing else, they are created by enterprising entrepreneurs forrepparttar 150138 sole purpose of merging an operating private company into it.

What happens is that whenrepparttar 150139 shell owner sellrepparttar 150140 shell torepparttar 150141 private company he retains 5-15% ofrepparttar 150142 shares for himself, on top of collecting any where upward of $500,000.00 for himself. And even if he signed and agreement not to sell for a year, most of these people can not be trusted and will at some point dumprepparttar 150143 stock or have somebody create a short position in their behalf.

Solution: The shell owner must be made to sellrepparttar 150144 entire position and be content withrepparttar 150145 money, which in most cases represents an enormous profit. I don’t have anything against anybody making a lot of money, I am all for it because I also stand to make a lot of money, I am againstrepparttar 150146 way they do it.

Awesome Customer Service Requires a Three Pronged Attack

Written by John Stanley

The perception inrepparttar marketplace, according to research, is that customer service is declining. Whether consumer expectations have increased or services have declined overrepparttar 150125 last few years is debatable. The fact is, perception is truth, inrepparttar 150126 consumers’ eyes.

Having stated that, some businesses still seem to excel in customer service and get rave reviews from consumers, surely they have a different strategy.

Internal Customers Remainrepparttar 150127 Same

It is my view that everyone joins a business team to do their best. It isrepparttar 150128 culture ofrepparttar 150129 business that affects their performance level. There is an African saying “the boss casts a long shadow” and this is especially true when it comes torepparttar 150130 standard of customer service we experience in businesses. Everyone wants to excel at customer service, but starts from a different point and performs torepparttar 150131 cultural expectation levels ofrepparttar 150132 business.

The consumer experiences customer service based, in my view, onrepparttar 150133 different levels: Level One: Synthetic Service Level Two: Genuine Service Level Three: Super Service Is itrepparttar 150134 understanding ofrepparttar 150135 team andrepparttar 150136 implementation process that makerepparttar 150137 difference.

Synthetic Customer Service

This is based on all team members being trained to provide a ‘customer service’ act. They are given a script, told to remember their lines and to repeatrepparttar 150138 same process with every customer.

This approach is common inrepparttar 150139 fast food industry and is often criticized by many business people, due to its artificial approach. But, in my opinion, it does have a role. Not every one hasrepparttar 150140 experience and attitude to provide customer service at level two or three.

Most young people do not haverepparttar 150141 life skills to move to level two or three. The same is true when employing people from a different culture to your target customer.

Companies that provide awesome customer service appreciate that not everyone will be awesome. They therefore ensure they have a rigorous training programme to make sure all team members are trained and skilled at least in level one customer service.

Genuine Customer Service This should be mainstream customer service. It is based on employing a team member with personality and then giving them confidence by providing product knowledge and skills training in selling.

Genuine customer service is often labeled Customer Relations Management. It requires team members to open conversations using “open questions”. They then rely on their listening skills and product knowledge to build a relationship and foster loyalty withrepparttar 150142 customer.

Genuine customer service has to be sincere and has to provide solutions for consumers. Thereforerepparttar 150143 sales person has to think forrepparttar 150144 customer and to think through their customer’s needs and wants. This approach ensuresrepparttar 150145 consumer trustsrepparttar 150146 salesperson.

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