As we gaze into our crystal ball we all wonder what the future holds for us in 2007. Where should investors place their bets for next year? One thing I am certain of is that there will be many opportunities for investors in the reverse shell merger marketplace. Reverse shell mergers will actually beat out the number of IPO’s that will be completed in 2006. There seems to be three distinct areas that will show steady growth throughout 2007.

• Reverse Shell Mergers - Will continue to increase and will outpace the 200 plus deals that were completed this year.
• SPACS – These types of deals require continuous observation and are difficult to complete but can be very lucrative to investors. It does take awhile for the public entity to find a suitable deal to vend into their public entity.
• PIPES – More choices in 2007. Opportunities for investors to purchase shares with registration rights for companies that are going public through a revere merger.

There is much talk about some kind of small company exemption for Sarbanes Oxley rule 404. If that happens in 2007 the number of reverse shell mergers will increase exponentially.

Bookmark to: