Cash Shells Anyone?

What are Cash Shells or Cash Companies and how are they created?

cash shells are created by someone who has no cash.wanting other shmucks to invest their hard earned cash and then screw them

dentist007 said:

cash shells are created by someone who has no cash.wanting other shmucks to invest their hard earned cash and then screw them

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Thanks, but I need technical info, and not a personal view. Can anyone help?

HI All,
I would also like to know where I might find a list of cash shells that are on the main London market.
Regards Phil

Virgin is a prime example of cash shells (in my opionion) - I think at the last count Branson owned something like 700+ companies

Pervaz said:

Virgin is a prime example of cash shells (in my opionion) - I think at the last count Branson owned something like 700+ companies

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Hi Pervaz,
Now that has confused me. I thought a cash shell had nought but cash
Phil.

Cash shells tend to be companies that have fallen on hard times; their assets are sold off (liabilities settled) and the company is run as a going concern. Due to the fact that the company has a stockmarket listing and cash on the balance sheet, it is attractive to those seeking a listing ofr their businesses and a slightly wider shareholder base.

They can be very rewarding for new shareholders that buy in at the right price before they rocket. However, these are relatively small companies that do not have anything going for them and as such are high risk. They are strictly for gamblers. Bid/offer spreads are generally very wide and it is almost impossible to deal in significant volumes. They tend to be penny shares.

That said, they are listed on Aim; FTSE Fledglings and FTSE SmallCap. The Penny Share Guide tends to give regular tips and analysis to subscribers and to those looking for a punt they could do worse than take out a subscription.

If you are looking at AIM listed shells (which is where most of them are nowadays), the AIM Guide is an excellent source of info.

My only dealings with (US) cash shells has been to use them to complete reverse takeover/mergers to take a private company public in the shortest amount of time possible with the least amount of administration/broker involvement. Some (cash) shells are purposefully set up purely for the type of play I have mentioned and can take up to 6+ months to create from scratch due to the all of the filing regulations, etc.

HTH

Thankyou guys for your prompt replies. The AIM guide sounds a good source.
Regards Phil

Oh - before I forget - try www.aimquoted.co.uk .

Thank you all for your help. Much appreciated.