ForeignExchange
Recycles dryer sheets
- Joined
- Dec 9, 2005
- Messages
- 67
Has anyone on the board successfully invested in the (OTC) Over The Counter Pink Sheets market?
I think you're throwing the baby out with the bathwater. A good stock is a good stock, even if it's thinly traded on a crappy exchange.Take it from experience... run as fast as possible away from these companies. You would do much better in Vegas. Don't even think you will just invest a small amount for fun, because you might make money and get sucked in. It's an insider's game.
I think you're throwing the baby out with the bathwater. A good stock is a good stock, even if it's thinly traded on a crappy exchange.
Spouse has been very happy with her Tate & Lyle pick. She doesn't suggest them very often but when she does, they're winners.
Oookay, that hasn't been my experience and Tate & Lyle isn't exactly what I'd call a "financial disaster", but I guess that's what they mean by doing your own due diligence...If it was a good stock it wouldn't be on a crappy exchange. These companies usually don't or can't file because their financials are a disaster. They are usually lying through their teeth in press releases, and working the MMs to get the stock price up enough so the insiders can sell. The real problem is it's difficult if not impossible to do DD. Press reports are just sales pitches, MM spreads are all over the place as they play their games, and it's just a gamble.
But I'm bitter, your mileage may vary. Good luck.
Oookay, that hasn't been my experience and Tate & Lyle isn't exactly what I'd call a "financial disaster", but I guess that's what they mean by doing your own due diligence...
Bought our shares in Dec 04 and July 05 at $36.50 & $32.10/share and it's paid back a total of 7% in dividends since then.
I have made some good money on OTC. Even held a CEO position in one. I think of it as swimming with the sharks. Just stay afloat and don't splash too much!
Seriously there are some good companies there but they are the exception. It is one of the few places that offers liquidity for companies that cannot qualify for more senior exchanges. Never have more than 5% of your portfolio on OTC/PNK!
Another thing to watch for is the state of registration. Nevada does not even require shareholder meetings or annual reports. Maryland is also slack compared with other states on reporting (but better than Nevada).
I've read a few horror stories on other stock forums - in one case shares were actually falsified(!!??) and people were fighting about whether they actually bought real shares in a company or not. I don't even know know it turned out (I'm guessing the company went under anyhow, making it a moot point), but who wants to hassle with that stuff?
-ERD50