Consumer Spending Contiues to Fall – So What Will the CPG Industry Do?

Consumers have been slashing their spending for the last several months, feeding the already painful recession as millions of households are opting to save rather than buy. Within the consumer packaged goods (CPG) industry, escalating prices and stagnant wages are also causing consumers across all income levels to be extremely price sensitive, so they are ...

Reverse Merger Tip of the Week: Limited Float

Very often post-reverse merger companies have very few shares available to trade  (the number of tradable shares is called the “public float”).  Immediately after the merger, almost all the shares are held by the owners of the formerly private company – call these “owner’s shares.”  At least initially, none of these shares can trade.  Thus, ...

A Sector of Optimism

African Americans are more optimistic about their financial future over the next year than the general population, but the majority of those responding acknowledge they don’t have a financial game plan and many don’t know where to start. A new survey by The Smiley Group and Nationwide Insurance shows 58% of African Americans expect their ...

Reverse Merger Tip of the Week: Accredited Investors 1

In completing a financing contemporaneous with a PIPE, a challenge with investment banks can be making sure they know their investors.  Most financings into reverse mergers require the company to have a reasonable belief that the investors are accredited, meaning essentially that they meet a certain income or net worth test under SEC Regulation D. ...

US Budget Deficit to Hit over $1 Trillion in 2009

With the enormous amount of government spending transpiring, one question that is not being asked on a regular basis is how it will be affecting the national budget deficit?  CNN Money recently analyzed the current state of the governmental economy along with projections for the rest of the year, with some less than inspiring results. ...

Tip of the Week: How to Get Trading in a Self-Filing

As noted in my book, if you choose to file your own Form S-1 or Form 10 to take your private company public, when that registration is completed, the company is public.  No IPO.  No reverse merger with a shell.  Financing has been obtained either before or right after the filing becomes effective. Under a year ...

Labor Disputes Continue for Aerospace Industry

In the down market, aerospace stocks have truly been getting hit hard.  However, it has not solely been due to the recession.  Over the past six months there has been a wide variety of labor disputes on both the commercial and industrial sectors.  And last week has been another difficult time for this industry. Midwest Airlines ...

Social Media Convergence Continues 1

Consumers’ rapidly growing interest in social networking has resulted in many looking beyond the computer and mobile screens to the living room, according to a new study by ABI Research. A recent survey revealed that today’s consumers are looking to extend their social networks to the TV, as 36% of those who currently use social ...

Auditing the Federal Government

Daylight Network, the first independent social network that allows every citizen to audit the federal government and collaborate on non-governmental solutions, launches the $5,000 Obama Prediction Market. “We face unprecedented economic hardship, and continued erosion of self-confidence has led many to look to the government for answers. Federal government has an annual budget of over ...

Tip of the Week- Above All Else: Seek Competent and Experienced Advisers

Who knew there were so many unique features of reverse merger transactions?  I certainly did not when I started representing clients in this area.  There are many tricks and traps that are easy to fall into even if one is an experienced securities attorney, auditor, investment banker, or operating company executive.  If there is one ...