Has pulled back off intraday highs, might be ready for round 2!


Car Designer Revenge Designs Announces Reverse Merger into Southern Cosmetics (SHCM)

DECATUR, Ind., Oct 23, 2007 (BUSINESS WIRE) -- Car Designer Revenge Designs, LLC announced today that Revenge and Southern Cosmetics, Inc. (Pink Sheets:SHCM) have completed a reverse merger transaction whereby Revenge's business assets and operations are now within the public company Southern Cosmetics, Inc. which trades under the symbol SHCM.
Peter Collorafi, the newly appointed President and CEO of Southern Cosmetics via the reverse merger of Revenge Designs, LLC, stated, "The reverse merger of Revenge Designs into Southern Cosmetics is complete. I look forward to transition the business name of the public entity into the name of Revenge Designs, Inc. in the very near term."

Collorafi further stated, "Our Company has a lot of exciting new product offerings in the works and I am very pleased that Revenge has transitioned into a publicly traded entity. I anticipate 2008 being a very successful year for the company and we are currently projecting potential revenues for 2008 to be in the neighborhood of $28 million.

"It is my hope and desire that our business model as a specialty car designer and manufacturer will be well received by the investing public. I would like to inform current shareholders that there will not be any reverse stock split associated with the announced reverse merger," stated Mr. Collorafi.

Revenge Designs, a specialty car designer and manufacturer, is headquartered in a fifty-three thousand square feet (53,000 sq.ft.) facility in N.E. Indiana. Mr. Peter Collorafi is a car designer from Queensland, Australia. Peter has been designing and installing modifications for factory produced vehicles since 1980. For more information about Revenge, please visit the company's website located at http://www.revengedesignsllc.com'> http://www.revengedesignsllc.com.

As of October 23, 2007, Southern Cosmetics, Inc. had a total of 193,989,934 shares of commons stock issued and outstanding (approximately 141,000,000 of those shares are Restricted). The Company has an authorized share structure of 500,000,000 shares of common stock authorized.

Due to today's reverse merger announcement, Southern Cosmetics, Inc. will in the near future request a change in name to reflect the new direction of the company as a specialty car designer and manufacturer in order to better reflect Revenge's new management and leadership role at the helm of the public entity.

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete an acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.

This press release is provided for information purposes only and is not intended to constitute an offer to sell or a solicitation of an offer to buy securities.

SOURCE: Southern Cosmetics, Inc.



CONTACT: Southern Cosmetics, Inc./"Revenge Designs", Decatur
Investor Relations:
Peter Collorafi, 260-456-5241

Due they buy back stock in a reverse merger. How does a reverse merger work. Would it be wise to get in this one?

They don't always buy back stock in a reverse merger, usually the stock just starts trading as the new company..can't advise you whether or not to get in, but if it is very new to you, maybe better to papertrade it to learn how they act.
Maybe one of the cats could answer your questions on reverse mergers etc;

A quick synopsis of R/M:

A reverse merger is a simplified, fast-track method by which a private company can become a public company. A reverse merger occurs when a public company that has no business and usually limited assets acquires a private company with a viable business. The private company "reverse merges" into the already public company, which now becomes an entirely new operating entity and generally changes name to reflect the newly merged company's business. Reverse mergers are also commonly referred to as reverse takeovers, or RTO's.

Going public (in any way) is attractive to companies because after going public, the company can use its stock as currency to finance acquisitions and attract quality management; capital is easier to raise as investors now have a clearly defined exit strategy; and insiders can create significant wealth if they perform.

The reverse merger is an alternative to the traditional IPO (initial public offering) as a method for going public. Many people don't
realize there are numerous other ways for private company to become publicly traded outside of the IPO. One widely used method is the "Reverse Merger".

The reverse-merger method for going public is more prevalent than many investors realize. One study estimates that 53% of all companies obtaining public listings in 1996 did so through the "Reverse Merger". The same study concluded about 30% of newly publicly listed companies got there through Reverse Mergers in 1999. Percentages have recently dropped because Wall Street Investment Banking firms have had a huge appetite for IPOs in the late 90s. This led to many marginal companies receiving enormous financial windfalls.

In a reverse merger, the original public company, commonly known as a "shell company," has value because of its publicly traded status. The shell company is generally recapitalized and issues shares to acquire the private company, giving shareholders and management of the private company majority control of the newly formed public company.

The RTO (reverse take over) method for going public has numerous benefits for the private company when compared to the traditional IPO:

* Initial costs are much lower and excessive investment banking fees are avoided.
* The time frame for becoming public is considerably shorter.

There are also several disadvantages of going public through the RTO as compared to an IPO:

* There is no capital raised in conjunction with going public.
* There is limited sponsorship for the stock.
* There is no high powered Wall Street Investment Banking relationship.
* The stock generally trades on a low exposure exchange.

Many highly successful companies have become public through the RTO process. However, there some important negatives investors should be aware of.

There is a much higher failure rate amongst RTO companies versus the traditional IPO. Much smaller and less successful companies are able to become public through the RTO, and many are badly undercapitalized. Often these stocks trade very inefficiently in the absence of any sponsorship or following.

There is a cottage industry of merchant bankers and entrepreneurs who specialize in orchestrating reverse mergers. Unfortunately, there are no barriers to entry in this field. Therefore, scams are common place.

Through various methods, scam artists manage to accumulate large positions in the free trading shares of the shell company. An RTO is consummated with a marginal private company, and the scam artists put together a massive publicity campaign designed to create activity in the stock. Unrealistic promises and absurd claims of corporate performance find their way to the public. The enhanced trading volume allows the scam artist to dump his shares on the unsuspecting public, most of whom eventually lose their money once the newly formed public company fails. This scam is commonly known as a "Pump and Dump".

Alternatively there a hundreds of examples of highly successful companies which have yielded millions in profits for investors that have gone public through the RTO. Many of these companies deserve exposure to investors. Initial valuations can be reasonable, providing excellent opportunities for individual investors to accumulate positions ahead of Wall Street institutional money.

Here are some high-profile and successful RTOs:

* Armand Hammer, world renowned oil magnate and industrialist, is generally credited with having invented the "Reverse Merger". In the 1950s, Hammer invested in a shell company into which he merged multi decade winner Occidental Petroleum.
* In 1970 Ted Turner completed a reverse merger with Rice Broadcasting, which went on to become Turner Broadcasting.
* In 1996, Muriel Siebert, renown as the first woman member of the New York Stock Exchange, took her brokerage firm public by reverse merging with J. Michaels, a defunct Brooklyn Furniture company.
* One of the Dot Com fallen Angels, Rare Medium (RRRR), merged with a lackluster refrigeration company and changed the entire business. This was a $2 stock in 1998 which found its way over $90 in 2000.
* Acclaim Entertainment (AKLM) merged into non operating Tele-Communications Inc in 1994.

__________________
Learn Pincher Plays and the Basics of Technical Analysis. I've learned a lot from Greencat and CC and a portion of all sales go back to SMC.

"Always bear in mind that your own resolution to success is more important than any other one thing." - Abraham Lincoln

"The heights by great men reached and kept, were not obtained by sudden flight. But they, while their companions slept, were toiling upward in the night." - Longfellow

Its hard to beleive this is not already hit the top of our board. Closed today @ 03.

FZ and I bought 50k each Friday and we are now sitting on a double. This has ran from 00 something to 03 and there is rumor of news being released this week.

Keep an eye on this

I agree with Aufan on this one. The MM's tried to drive this down all day and it held on and rallied strong in the late afternoon. I actually increased my position with another 50k at 0.02 in the late morning, so I'm sitting on 100k of shares now. It has a chance to hit .05 Tuesday IMO based on it's strong rally today. Look at the charts-and TA-when they look like this--money is to be made people. But, remember they fall fast also. News is due on Wednesday so tomorrow is good day for another run. If it gaps up again, I am selling 1/2 my shares and riding free---then I have no stress left in this one

GLTA
:D

__________________
fz4fun

-----------------------

It's only money----but try not to lose it, OK?

A post on 11/23? Darn, missed that one...

We both originally posted in the Todays movers and tomorrows...thread about this on Friday and then again today. Sorry if you missed those posts, but watch this one tomorrow. I don't know if it will dip back into the 0.02 range, but if you want in, watch for an early entry because it may gap in the am again.

Good luck

__________________
fz4fun

-----------------------

It's only money----but try not to lose it, OK?

Anyone else jump in today? Wed. is rumored to be the day for news but whats even bigger is the strong rumor of HUGE news.

I placed an order for 25k more this morning before leaving for work and it filled @0.0275. Total position avg is @0.0205 now. I was surprised to see it close down a little, but based on all the buzz-supposedly with 1st hand info that Wed news is very big and even bigger news on Friday regarding this one. Not sure if news in pre market or during day Wed-I will be working and anxiously waiting to hear what is announced.

This one could go bigtime or suck my money down the PR drain BUT I think it is still running higher before any real pull back-

Looking for big gains here

Go GREEN baby

__________________
fz4fun

-----------------------

It's only money----but try not to lose it, OK?