About Ralph Amato and his Blog

The www.reverseshellmerger.com blog is designed for experienced investors and traders. Reverse Shell Mergers (hereafter referred to as “RSM”) are complex transactions that have tremendous upside for investors IF you buy in when the timing is right. These transactions are not for the faint of heart or novice investors.

Mr. Amato has been involved in the financial services sector for over 30 years and has had active participation in reverse mergers since 1998, so he has seen the good, the bad and the ugly. What he has noticed over the last several years was a paradigm shift in the Shell marketplace. There are several reasons for this shift:

1.) The average shell has dropped 50% and now costs $300K to $400K

2.) The valuation of a PIPE funded Shell company averages $50M

3.) Sarbanes Oxley has eliminated stock promoters

4.) Influx of foreign companies trying to gain listing in US markets

5.) Underwriters for IPO's have virtually disappeared

Most of the tier one underwriters were forced to convert into "banks" in 2008. Underwriting IPO's has come to a halt.  There was only one IPO in the last quarter of 2008, one in the first quarter of 2009 and (so far) one in the second quarter of 2009.  Large underwriters have disappeared and have been replaced by mid level investment banking firms. However, these firms no longer have retail distribution. All of their investors, now numbering over 32 million in the US alone, have moved to greener pastures, namely online brokerage accounts. Investors can now buys stocks online for a fraction of what they used to pay a broker. There are many online investors but, until now, no one knew when Shell deals were coming to market. More important, very few people have the expertise to analyze Shell deals.

Today, the price of an OTCBB shell has been sharply reduced.  What used to cost $600,000 to $800,000 now goes for $300,000 to $400,000. In the past Buyers paid as high as $1 million for an OTC Shell. So, you may ask yourself, what does this mean to me? What it means is that in today's economy it is tougher than ever for a company to be able to attract capital.  Therefore, companies who need access to capital are seeking to go public through either a reverse merger or an Alternative Public Offering ("APO").  Investors will now have access to purchase the stock of emerging growth companies as they come to market via a reverse merger into an OTCBB shell.