copyright Bettina Network, inc. 2013
Every once in a while we have conversation about the stock market – stocks people are buying – all the things of interest to those who invest, trade, gamble stocks listed in the New York Stock Exchange, but sometimes we even have conversations about foreign exchanges and stocks traded around the world.
The most interesting are generally those connected with natural resources – gold, silver, oil and the like.
This one is about a small stock we traded before and so were interested to hear it come up for consideration once again.
It is PRHB – which stands for Pure H2o BioTechnologies. They are currently selling for $.0001 – so $100 will buy one million shares. Our ears picked up immediately. What a conversation piece. We could buy this stock and talk to our friends dropping our million share purchase of a stock we expected to soar. Well, to at least .01/share, but we will leave out that part.
The cost of one million shares is the cost of a lovely meal for two – so we will forego the meal and buy the stock. Much more fun and with some lasting memories. Maybe we will even send for the stock certificate and frame it for future generations.
The company has a good technology, we think. It produces and distributes high purity water for industrial and institutional applications. What could be more environmentally friendly. They say their water treatment is trouble-free for their clients and they say “they manufacture the highest quality, totally integrated systems that exceed customer expectations and reduce customer operating costs.”
If you want to read more about them, their web site is www.ipureh2o.com or you can Yahoo, Google or Bing PRHB or their name!
We didn’t do a lot of research – instead we just bought the stock because we were looking for a bit of fun in the stock market, which has been great for some lately and a disaster for others. We thought we would take the fun part and have a great story – follow a stock that could produce millions for us – or could lose us our $100 investment.
Maybe next month we may even buy another one million shares! Our ears are open for those conversations at breakfast which just might bring us that windfall that the lottery has not produced.
Isn’t it amazing how bed and breakfast can add to the quality of your life!
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Even More Stock Market Information
Tuesday, April 6th, 2010copyright by The Bettina Network, inc. 2010
A summary of this breakfast’s stock market conversation is only for the strong of heart.
We had a guest who was celebrating wildly at breakfast. He owns 1 million shares of a little stock called EKWX. To find it we had to go to http://investorshub.advfn.com/, an information web site for people who spend $50 and buy a few million shares of stock (I hope you realize that is an exaggeration).
This is a stock which sat dormant for several years at about .0006/share and since March 31, 2010 has gone to .002/share. Figure out that profit if you owned the 1,000,000 shares. There is no information on the company I could find. The guest knew nothing, he was totally into his euphoria over his great luck and he was going home to buy more.
Going to Investors Hub,—- when their site opened, on the landing page on the left hand side was a list of the 15 stocks with the most comments, which were left by those who regularly follow what happens on investors hub and at the top of the list was EKWX. Much of what we read was about conjectures that this was going to be a reverse merger where EKWX is a publicly traded shell, probably merging with a private company and the activity comes about because, as you know, news leaks, only we aren’t on the top of the list to get the leaks.
EKWX traded almost a billion shares today and has gone up some 350% since 3/31/2010.
We are going to follow this guest and his stock tradings. We asked him to write a blog for Bettina’s, but he spends his days watching the stocks he buys and sells and doesn’t write.
He danced around the breakfast table all morning, trying to stay sane until the stock market opened and he could watch his stock – which he did, all day. We would have danced with him if we owned any of EKWX, but since we don’t we just drank an extra cup of coffee.
If the stock goes to $1, he becomes an instant millionaire.
This has better odds than the lottery, at least you get to keep some of your money if what you expect doesn’t happen.
The blogs are hot with this stock and the conjecture on most of this is that EKWX – a public shell – is in the process of becoming a Reverse Merger. Which is what is causing all the furor.
What is a Reverse Merger with a Public Shell?
“A Reverse Merger is a transaction where by the private company shareholders may gain control of a public company by merging it in with their private company. The private company shareholders receive a substantial majority of the shares of the public company (normally 85% to 90% or more) and the control of the board of directors. The transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company. The transaction does not go through a review process with state and federal regulators because the public company has already completed the process. The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing the public shell company issues a substantial majority of its shares and the board control to the shareholders of the private company. The private company shareholders pay for the shell and contribute their private company shares to the shell company and the private company is now public.
Upon completion of the reverse merger, the name of the shell company is usually changed to the name of the private company. If the shell company has a trading symbol it is changed to reflect the name change. An information statement, called an 8-K, must be filed within 4 days of the closing. The 8-K describes the newly combined company, stock issued, information of new officers and directors, a full description of the business, and financial statements audited to US GAAP standards. The 8-K must disclose the same type of information that it would be required to provide in registering a class of securities under the Securities Exchange Act of 1934.
(See Sec Final Rule 33-8587, pdf file)
If the shell company is listed on the Bulletin board, the registered or “free trade” shares can continue to trade. The company can do a private placement immediately. To trade new shares offered by the public the newly combined public company must first register the shares with the SEC. This process takes three to four months and normally requires filing a Registration statement with the SEC under Reg. SB-2 or SB-1.
If the shell company does not have a symbol, an application for a symbol is usually made to the NASDAQ Bulletin Board. The application for a symbol requires filing a Form 211 by a market maker that is a member of the NASD. The Bulletin Board has no financial requirements. A listing will be granted if the affairs of the company are in order and the company answers the questions posed by NASDAQ.”
ED: NOTE; THIS WAS COPIED FROM THE Investors Hub Web site to give you an idea of what this kind of trading is like and how and where to find information when you are off the big board and onto the sub-penny stocks. We hope they don’t mind.
Of course, another possibility is that this is what is called a “pump and dump”, something which happens on these boards. Someone starts buying a stock to get your attention, little by little others jump on the band wagon seeing the action and when the stock has moved up a bit, the original person sells all of his stock and runs to the bank with the money, leaving a lot of folks holding the “bag”. Only generally, the stocks don’t go this high this fast with a pump and dump operation going.
Wheee! Isn’t this fun? It actually would be if we had money invested in EKWX at .0006. This way, as observers, it is a learning experience and especially learning how to contain our jealousy of someone who has that 1 million shares.
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Learn More About How We Use Your Donation!
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______________________________________________________________
Want to join us? Have a home that you want to open to become one of Bettina Network’s Hedge Schools? Call us and lets talk – or email us.
Ed. Note: Members of the Bettina Network Lifestyle Community can contribute to the Bettina Network Blog whenever they have anything they want to say and be heard by this fantastic group of people. Send your blog to bettinanetwork@comcast.net or mail it to us at P. O. Box 380585 Cambridge, MA. 02238 or call us on the telephone at 617-497-9166 to tell us what you want to say and we will write it for you.
Volunteer with Bettina Network Foundation, inc. to work estate sales; to help move items from one home to another; to contribute your ideas on how we can better use our resources in this effort to relieve and eliminate homelessness and poverty. We also need photographers; designers; and more. However much or little time you have, we are grateful.
Send your event information to be included in Bettina Network’s Menu of Events to: bettina-network@comcast.net
This is a curated blog so you cannot write your responses at the end of each entry. TO RESPOND TO THIS BLOG email bettina-network@comcast.net or info@bettina-network.com
TO LEARN MORE try www.bettina-network.com
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