west bankruptcy reporter

west bankruptcy reporter

Most investors are weary about the Over-The-Counter Bulletin Board (OTCBB). This is understandable given the level of bankruptcies, shell companies and de-listings occur that in over-the-counter markets. But it is a very large misconception that is widely shared among investors: that is no over-the-counter company has to report on current financial information. This is the case with the Pink Sheets, but not so with the OTCBB.

You see, before 1990 the over-the-counter securities market was showing a wild-west. Not complete lawlessness, but close to it. For years to the SEC started the Over-the-Counter Bulletin Board as part of the Penny Stock Reform Act. The main purpose OTCBB was more tender and freight sales. By the year 1999, the OTCBB had developed to the point where each company had regular financial information to report. This is different from others, especially the Pink Sheets, which no reporting requirements.

There are absolutely no requirements for Pink Sheet companies. They are not entitled on regular and timely financial information file (although a current classification is slowly changing that), it is not the absolute minimum market capitalization requirement and they are certainly not the few hundred thousand dollars are traded on a major exchange to pay.

The OTCBB on the other hand, is a much stricter form of the Pink Sheets. Over the Counter Bulletin Board companies have to stay up to date with regular reporting. That really makes the difference in the World.

Here's an example:

Company A is traded through the Pink Sheets, and Company B is on the OTCBB. Both companies issue press releases says he is "transitioning their businesses." Company A really just slumps into a shell company state, because no one know what is going on over there. Considering that the company B has a regular quarterly earnings file. If this is not the OTCBB will add a dunce cap (or in this case the letter "E" at the end of the ticker of the company), which tells us that the investors shall immediately notify the Company not enough, corporate responsibility. This may be the success or failure this investment. People invested in Company A are out of luck. Company B is able to get investors, before it is seriously hard.

But does not explain this, why OTC companies are worth investing in. There are two reasons for the commitment in the OTC market to …

The main reason most OTCBB investors keep trading these securities is the profit potential. Of course, a 300 billion U.S. dollars may not be doubled in size in blue chip too easily. That does not mean that investors are working too much. A $ 3 million company to double in size batting night without paying. What would you prefer in your portfolio?

The second reason is also a pretty straightforward. Since many of these small companies are working on a much smaller scale overall general market attitude has very little effect on them. There is almost never a large Institutional investors and large fund managers to draw money in and out of these companies. These two groups of investors are more interested in the macro market sentiments as that what each company. So, in a bear market, it is quite possible some of these OTCBB companies have take off.

In a 2001 study in the Journal of Alternative Investments, a four-year period was examined published over the counter bulletin board trading for risk money back. The interesting result, they came with the OTCBB was that stocks do not reflect what the general market was doing at that time. There were a few years, extremely optimistic mood, as a solid Yield can be defined on the S & P, and the entire OTC market lost a lot of money. On the other hand, that year of extreme pessimism in the S & P, together with the main Stock exchanges, showed positive returns for many OTCBB companies.

Whether you are a safe bet type of investor or a fly-by-the-seat-of-your-pants type, there there still a place for you, right on the major exchanges.


Jim Nelson, Managing Editor Penny Sleuth

About the Author:

Jim Nelson is the managing editor of the FREE daily e-letter The Penny Sleuth. The Penny Sleuth offers unbiased commentary from expert analysts and authors on Small Cap Stocks, Penny Stocks, OTCBB and Pink Sheet Companies.

Article Source: ArticlesBase.comInvesting in the Over the Counter Bulletin Board (otcbb)

World Business: Kia Heads West 24/07/09

West's® Bankruptcy Reporter (129 S.Ct. 781-1186, 548 F.3d 1 to 553 F.3d 1382, Volume 399)

West’s® Bankruptcy Reporter (129 S.Ct. 781-1186, 548 F.3d 1 to 553 F.3d 1382, Volume 399)




West's Bankruptcy Reporter, Volume 1 (West's Reporter Series, A Unit of the National Reporter System, 1)

West’s Bankruptcy Reporter, Volume 1 (West’s Reporter Series, A Unit of the National Reporter System, 1)

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