December 1, 2000
Action is taking to put something on MMs.
Spilling over to the OTCBB???
Could the flight to safety and value that we hear so much about in the NYSE be taking hold with OTCBB investors and traders? I think so. And when otherwise very thinly traded and not very well known stocks announce that they actually earned a profit, investors and traders bid up share prices upwards of 200-500 percent, although some of these stocks can fall prey to sharp pullbacks. Maybe the speculators or last winter are realizing that it is important for a company to turn a profit and finance operations with earnings instead of letting the share printing press run on automatic pilot.
The NASDAQ investors have already sent a message about how they feel regarding companies that cannot turn a profit and dare I say it may be spilling over to the OTCBB, arguably the most speculative market around. The down side for the true speculators of course is that these companies are rarely in a fast moving segment of technology, such as wireless, broadband or any other buzz word that caught the imagination during the roaring bull market. The companies are in more mundane segments of the economy, such as health care or family entertainment.
OTCBB investors staging their own kind of revolt
- including class action suits and writing Congress -- against the MMM that has threatened their right to a free stock market. These are typical.
Mitch Levy, known to Raging Bull followers as a spearhead of the MMMANIP board, isn't content with rhetoric.
"The other day," Mitch wrote, "I was approached by an attorney for a leading securities law firm who told me that he felt we may have a case for a class action suit, and that his firm would be willing to take it on a contingency basis. The firm has been very successful in the past with a similar suit."
"Approximately two weeks ago I started to announce on various boards my effort to change the OTCBB. To date I have well over one hundred investors who have voiced their interest in participating in this effort with more and more stepping forward every day." You can Join Mitch on the Raging Bull MMMANIP board.
Investor "Spec-U-Late" wrote OTCNN, "I'm putting together a class action suit with a major securities law firm against the various manipulators and their governing bodies in the OTCBB. I'd like to contact the principals of (company named) to see if they would be interested in joining this effort. . The thievery is going to stop! This will happen!"
He invited "anyone interested in participating as an individual investor, please email me at SPEC_U_LATE@ragingbull.com, and I'll put you on the list of participants. Feel free to join in on the discussions taking place at the MMMANIP message board at Raging Bull."
Instead of turning to the law, some investors preferred to approach the lawmakers directly.
Investor Brian Zander has been getting the word about MMM to elected officials. "I have been promoting the idea of shareholders writing to their senators and congressmen a letter voicing our concern over MMM. We could fill up our representatives' mail boxes and let them know about this problem.
Investor Kurt Waters wrote along similar lines: "I have been closely watching the events unfold regarding the suspension and subsequent 'Pink Sheeting' of WAMX," he wrote. "Market Maker HERZ brings the charges against WAMX and then is the only one that can 'allow' WAMX back on the Bulletin Board? Who is in charge? HERZ or SEC?"
Waters went on to say: "I have subsequently sent e-mail to several Congressmen and Senators urging them to look into the actions and power of the MM's. I have also reminded then that their constituents could well be investors in WAMX or any other OTC stock company that has fallen prey to MMM. Perhaps they will remember that when election time comes around."
Writer's Comment: A comparison does suggest itself. In 1776, Americans were faced with impossible odds and an enemy that was well-financed, better trained and arrogant in its power. We know who won despite the odds. |
