For those who short BB stocks, the monthly delistings for not filing are beginning. These might be interesting as a delisting play, because it is very easy to identify these stocks.
For those who don't know, the NASD now requires BB stocks to become fully reporting, something that half of these companies have never done. The rule is being phased in, with certain stocks having their deadline July 1, the next bunch on Aug 1, etc, thru June 1, 2000. What they have to do is file a form 10 before the deadline.
The first bunch just had their deadline.
What makes this really easy to follow is that the otcbb people publish a list of stocks about to be delisted, about two days before it happens, on the site otcbb.com
I checked this site on June 30, and I got the list. There were maybe 2 dozen stocks ready to be delisted, but only two of them traded above $5. The latter were EPSOE (14 X 15) and SSLKE (5 7/8 X 6).
I'm planning to watch these two stocks to see whether they begin to trade in the pink sheets, and whether they drop. If they do, then shorting similar stocks at the end of each month might make a good play.
SSLKE was interesting also because it was featured at www.stockdetective.com. The stock doesn't seem to have an actual associated business with an address and phone. The website at shoppingsherlock.com makes the co. look like a sham. I'll bet they never file anything.
|
