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The reasons why you should hold Penny Stocks

There are many prejudices about Penny Stocks and why should anyone have them in their portfolio. As defined by the U.S. Securities and Exchange Commission, penny stock is any publicly traded firm’s share that trades below $5 per share.   These types of stocks are inexpensive, allowing you to invest without committing large sums of money, which is advantageous for those on a limited budget.   That also implies if the business in that you have just invested fails, you won't suffer a significant loss per share.  Finally, all this indicates that the very same amount of money can purchase more penny stock shares than it can purchase more expensive securities shares. Tremendous gains can be made with a tiny initial investment. As a result, they have the potential to become extremely successful.  Despite their significant volatility, penny stocks provide excellent returns. These stocks have the ability to provide explosive growth of 100% or over in a single day, a...

Why you should list your company on CSE?

C anadian Stock Exchange or CSE, operated by CNSX Markets Inc. is an alternative stock exchange In Canada, recognized as such in 2004. The CSE represents itself as an exchange for entrepreneurs that offers alternative and easier access to capital market. This is done through simple and precise rule book that makes listing quick and relatively inexpensive. The exchange is fully automated which means that floor trading method is not preferred.  Taking your company public by listing it on CSE gives you an opportunity to explore Canadian strong capital market and raise capital that will help your business grow. As publicly traded company on Canadian capital market will raise your corporate profile and draw attention of investors willing to invest in your company. In order to become publicly traded company in Canada company must become reporting issuer with one or more  of the Provincial Securities Commissions which means it is subject to ongoing public disclosure and...

Common investing mistakes

When trying to learn any skill and reach excellence, mistakes are the natural part of process. There is no way around it, but beginner investor are usually more prone to making these mistakes. Even famous and successful investor have made some of these mistakes at least once. We will look over some of the most common mistakes in hope to raise awareness among future and current investors and help them avoid repeating them. First of all, investing in business and industry that you don't know that well is not a good idea. There is always some "hot" and "up and coming" industry sector but if you don't have much knowledge about that particular industry and don't understand its business model avoid it. For example crypotocurrencies were massive hit, year and a half ago when bitcoin reached its all-time high of $19,500 and then fell to $3,000 a year later. Inexperienced investor could suffer a massive loss if he doesn't fully understand complexity ...

What is a mutual fund?

Mutual funds is professionally managed company that collects money from many investors to purchase different types of securities such as stocks and bonds. Those combined holdings make fund's portfolio.Shareholders buy shares, parts of portfolio's value and participate proportionally in fund's gains and losses. Money managers allocate assets and try to produce gains for investors. Portfolios are managed differently in accordance with investment goals formulated in prospectus. Because funds invest in huge number of securities, its price of share is called net asset value (NAV) which is calculated by dividing total value of securities on the fund by total amount of shares outstanding. Price is settled at the end of the trading day so it doesn't fluctuate during market hours like regular stock. There is more types of mutual funds that are  classified according to the kind of securities that they invest in, investment goals and type of return they seek. Equity f...

What is the purpose of interim management?

Public companies often have two tier corporate organisation which consist of board of directors who protect shareholders interest and senior management who is responsible for day-to day operations and profitability of the company, including chief executive officer (CEO), chief operation officer (COO) and chief financial officer (CFO). When management is doing a good job business operations should run smoothly but as you probably know that is not always the case. In time of turmoil company can seek professional help in form of consultancy or more often by hiring an interim management whose job is to manage a company during a transition or crisis. Interim management is modern troubleshooting management techniques that started in the mid to late 1970s gaining a momentum during the decades to come. Even though it bears similarity with management consultancy, interim management can deliver more effective solution in less time. In simple t...

How to start investing?

Investing is a great way to grow wealth. The key is to minimize the cost and maximize the return but you will have to keep a few things in mind. Doesn't matter if you have a couple of thousands or a hundred dollars you can always find a way to invest your money, from big blue chip to companies to investing in retirement plan available at your work. First of all you need to determine what is your investment style and choose the right broker accordingly. If you are individual type and you want to explore the market and pick the stock that you like than online or discount broker might be the right for you. Once considered exception online brokers are now the norm. Considered as simple order takers they are the least expensive professionals licensed to buy stock on your behalf. You will be charged on per-transaction or per-share basis. Communication takes place over the phone or via internet. Broker tech support allows you buy and sell stock instantly through your account. The...

Understanding bonds

Bonds is one of the three main asset classes besides stock (equity) and cash equivalents. Bond is considered fixed income security where bond issuer is in debt to the bond holder and is obliged to pay him an interest. It can be understood as a form of a loan where holder of the bond is creditor, issuer of the bond is borrower and coupon is interest that he pays. Issuers of the bonds are companies, municipalities, states and governments which used funds obtained through bonds to finance long term investments and current expenditures. Bondholders are debt holders that have priority over stockholders but are ranked behind secured creditors in case of insolvency. Bonds have maturity date when the principal is due to be paid and interest rate that can be fixed or variable. Principal is face value of the bond, actual amount that is on the bond which will be paid to the holder at the maturity date. Fixed rates remain the same through the set period while variable rates fluctuate o...

Current report

Public reporting companies in the United States besides regular quarterly reports (10-Q) and annual report (10-K) must report certain current events on the form 8-K and file it with Securities and Exchange Commission (SEC) pursuant to Securities Exchange Act of 1934. Form 8-K provides shareholders and investors with current information enabling them to make informed decision. Certain unscheduled material corporate events happen between filing for quarterly and annual reports that need to be reported to the shareholders. Event is material when it could affect reasonable shareholder's investment decision for example bankruptcy, restructuring of the company or acquisition. SEC has outlined nine sections with subsections for different type of events: Registrants business and operations, Financial information, Securities and trading markets, Matters related to accountants and financial statement, Corporate governance management, Asset-backed securities, Regulation FD, Ot...

Types of financing (part 1)

There are two basic types of financing: debt financing and equity financing. Debt financing happens when business borrow money from a lender at a fixed or floating interest rate for a specified period of time. The most important characteristic is that debt financing is that doesn't give a lender part of ownership. Terms of the loan are dependent upon what the loan is being used for. Loans are most common and popular sort of debt financing. Business usually borrows from commercial lenders like bank and they offer some collateral as a form of a security for a loan. Loans have fixed periods and they are pay in regular intervals with interest rate. They can be short term, medium and long term in duration depending on the needs of business. Short term loans are used for temporary and seasonal loans. The most common type of short term loan is line of credit, agreement between borrower and lender that establishes maximum amount that customer can borrow and use it ...

Chapter 11 financing and reorganization - Mina Mar Group

When you start your business you are so concentrated on growing and expending your business that you forget to consider the downsides of business cycles. Business cycles are sequences of economic activity that is characterized by four phases: recession, recovery, growth and decline that repeat themselves.Decline or downturn makes the end of growth period in the business cycle. It is characterized by decreased levels of consumer and reduced production. Maybe you missed to devise downturn business cycle management strategy and found yourself trapped in a situation where your creditors are hounding.  Toxic financing can demolish your life's work and erode your shareholder value. It happens when financier can convert preferred shares and convertible stock into common stock that they sell on the market in order to be repaid and earn a profit on investment. The formula for the conversion is structured so that there is no downside limit on the price received for converted ...

Chapter 11

Bankruptcy happens when business is unable to pay its debts and creditors. Business can file with federal bankruptcy court  for protection, usually under chapter 7 or chapter 11. In the United States bankruptcy is governed by federal law commonly referred to as the "Bankruptcy Code". Bankruptcy cases are filed in the U.S. Bankruptcy Court and federal law govern procedure in bankruptcy cases but state laws are often applied to determine how bankruptcy affect property rights and debtors. Two major types of bankruptcy are Chapter 7 and Chapter 11. Chapter 7 happens when company ceases all of its operation and goes completely out of business. A trustee is appointed to sell (liquidate) company's assets in order to pay off its debt. Debts are payed off according  to absolute priority. It is rule that secured claims are paid before junior claims are paid. In that order secured creditors are paid first, then bondholders and in the end shareholders. In other words, invest...

RTO VS IPO (Canada)

There are different method to take your company public in Canada: initial public offering, reverse takeover, and direct listing. There are several advantages and few disadvantages of reverse takeover (RTO) over initial public offering (IPO).  An IPO requires a preparation, filing and clearance of prospectus which is subject of review and approval by the securities exchange commission. Disclosure document for RTO includes prospectus level disclosure with respect to the private company. In addition disclosure documents relation to RTO transaction will not be subject to review by commission. Private company will undergo due diligence and disclose information which  it has not previously  made public, including three years of audited financials. The private company will also need to conduct due diligence  of the public company to ensure that it is not inheriting any material unknown or unforeseen liabilities and that public company is up to date wi...

Reverse takeover - Canada

Reverse takeover is transaction in which public company listed on a stock exchange in Canada with few or without assets (often referred as shell company) acquires all securities of a private company with a significant assets and operation. It is considered a less expensive and time consuming alternative to initial public offering (IPO). This way public companies acquires all securities of public company and it becomes direct or indirect wholly-owned subsidiary. Shareholders of the private company receive shares from the public company  and the operating company's shareholders ultimately acquire a controlling interest in the new, combined company. Shell companies may be created and maintained just for purpose of reverse takeover or it can be existing company, a  reporting issuer that have previously ceased operations, but still maintain their reporting issuer status and usually have the shareholders required to list on a stock exchange. This makes them ideal candi...

Filing a prospectus in Canada

Companies that go public on a stockmarket in Canada become a reporting issuer  with one or more of the Provincial Securities Commissions (CSA). The ten provinces and three territories have teamed up to form Canadian Securities Administration and they are responsible  for securities regulation and developing harmonized approach to securities regulation across the country . Reporting issuer is a person or a company who has outstanding securities, has issued securities or proposes to issue security and has filed a prospectus for which receipt has been issued under Securities Act. He is also a subject to the continuous disclosure reporting requirements of Applicable Securities laws in Canada. Companies can become reporting issuers by filing and clearing prospectus. A typical Canadian prospectus  offering is a formal process with extensive  documentation. prospectus must contain full, true and plain disclosure to investors and the public about the compa...

Business plan in capital advisory

One of the important services that we offer in Mina Mar Group is capital advisory. This is extremely important issue because most small businesses fail due to cash problems.Our focus in on offering the quickest and most cost-effective solutions to our clients while also defining and diminishing possible risks involved. Our objectives are accomplished in several different ways. One of them determination and assessment of the opportunities for growth of your company. We have ability to secure all sorts of funding and one of the must-haves in the process is well thought business plan that we can submit to financial institution or investor. Good business plan should include overview of the industry sector, analysis of targeted market, competitive  analysis, sales, marketing and financial plan.There are many more reason why you should write a business plan. First of all it is a great way to test viability of your business idea. Mina Mar Group will help you assess all ...

Gain visibility of your stock

Most small businesses and newly traded companies fail because of a lack of investors visibility. Mina Mar Group have a whole department within a company dedicated solely to bringing your company up to speed with current communication and marketing trends that you might missed. Our dedicated team of professionals will open new lines of communication between your company and  your current and potential shareholders, brokers and investors.  You do what you do best - running your business and we will take care of needs of your investors. We will use every opportunity to provide fact based information about your products and services. All information theta we deliver is free of promotional  hype, editorially neutral - an honest presentation which is never an endorsement. With us you will access important and targeted channels to reach investors: • Company profile (summary or detailed — based on needs and budget parameters)  • Quick Fact sheets • F...

Mina Mar Group - what we value

Mina Mar Group has a mission to use collective set of skills from our executive team to  provide our clients with the tools, expertise, investor network and funding sources to fuel their growth. We believe in companies with substance and high growth potential that truly deserve to be listed on the stockmarket. The values we endorse are reflected as a tangible results in our clients' performance These values empower us to achieve client, company and individual success and are carried out in pursuit of excellence and acting with integrity. Initiation - turn your thoughts into action. If you are principal in your company that meats our requirements talks to us first. It is important to make a first step and know where you stand. Sometimes your dreams can be bigger than your budget but we at Mina Mar Group have various affordable options for you that will make your dreams a reality.  Innovation - we like to create new solutions and overcome obstacles. At Mina Mar...

Opportunity for Chinese companies

Mina Mar Group has a unique approach to reverse merger. Our main objective is not to just seal the deal and make a quick dollar but to work with companies that have real substance, products, revenues and potential to grow. We will help them get publicly listed and beyond that helping them reach investors and building liquidity. Mina Mar Group is there every step of the way with their clients, leaving nothing to chance. Mina Mar Group primarily work with companies on U.S market offering them cross border listing services to our on the Frankfurt Stock Exchange but we also work with Chinese companies . Since 2008 Mina Mar Group we took over 100 companies from China public. Second largest economy in the world has to offer quality companies and we are glad to help them get listed on the U.S. stockmarket via reverse merger. We maintain a list of reporting and non-reporting companies and depending on what kind of company you are looking for and your budget we will find you the matc...

Our perspective on reverse merger

When we are talking about market perspective usually the financial community is mostly focused on private companies that want to go public and are prepared to pay for the privilege of going through an IPO or reverse merger. That is why most financial consultants are looking for the public shell company just to close the deal. Often private companies that use reverse merger to go public are ill-informed on ability to raise funds, unprepared for the intensive effort and extensive costs to create liquidity. This can even lead company to become a shell itself due to lack of action in implementation of needed solutions. This way there is no long term benefit on both sides. Mina Mar Group sees things quite differently. Instead of making quick profit shared between shell owner and us. We deal with private companies that already offer profits  and that truly deserve to be publicly traded and can attract investors at the retail and institutional level and build...

List your company on Frankfurt Stock Exchange

Mina Mar Group can open the door of completely new continent for your company. We are talking about cross listing of your company on the Frankfurt Stock Exchange. It is a great way to broaden your shareholder base in a Europe where is strong demand from both private and institutional investors to invest in small-cap and medium-sized public companies from U.S. together with benefits of trading locally. There are many other benefits of cross-listing: increased liquidity, opportunity to raise additional capital, increase in trading volume, decrease in volatility, enhanced visibility among overseas investors, possibility to tap into retail and institutional funds and benefit from changing global attitudes toward equity investing. Mina Mar will coordinate comprehensive investor relation and public relation program created to maximize dissemination of corporate information to potential investors. Frankfurt Stock Exchange was founded in 1585 and is operated by Deutche Börse AG. A...