On Sunday we wrote about the possibility of renewed interest in shell stocks. http://pennystockgurus.blogspot.com/2008/06/are-shell-stocks-going-to-heat-up-again.html
The very next day shell stock FRTL, which had closed at .0008 on Friday, had a very impressive rally and at one point was up well over 2,000% before settling at .011 and a +1,250% close.
What made FRTL move on heavy buying volume? The stock looks to be getting ready to reverse merger with a company in the financial industry - Envit Capital.
A 15-12G was filed with the SEC on Friday, and http://www.pinksheets.com has been slowly posting new information about this company under the ticker FRTL.
The share structure of FRTL is also appealing as the authorized shares are 40 million and the current outstanding shares, updated on June 27th 20008, are 30.6 million.
A cloud that hangs over many shells, outstanding debt, has been resolved in 2006 as the previous company, FORTEL, had its chapter 7 bankruptcy closed. The shell should be clean now, and that is always something to look for in a shell stock. Outstanding debt could dilute current shareholders stake in the new company after the reverse merger.
FRTL will be interesting to watch going forward. With many reverse mergers a dreaded reverse can occur, but with the low share count this might not be an issue here.
Discuss this stock and others at http://www.pennystockforum.net
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