Wow, this means market makers for otcbb issues will have to...gasp...honor their posted bids and offers ! LOL
There are a number of OTCBB issues that are not the share issuing, hype mongering pump & dumps. As you said, some banks, a number of cash rich "shells" looking for a business rather than a business looking for cash. (PERS,LBPI,ESGR)
There are also some issues that have fallen on hard times but lack the shadyness of most otcbb issues. (CRTN,DIYH,AGBG) These kind of stocks do not deserve to be lumped in with the hundreds of others whose primary purpose is to raise $, and along the way, they will try their hand at a business or two.
I personally follow the bottom tier of the nasdaq smallcap market and those sometimes get booted to the otcbb where,without the hype, the valuations tend to fall well below private market values. My philosophy is that I am not smarter than dozens of analysts and I do not have access to their information, therefore, I do not have any advantage and indeed I am at a DISadvantage in large cap stocks.
With the little pissant issues I follow, I am usually more informed than most. Sometimes that is an advantage. Generally, I want to do the opposite of the masses.
So if some pump & dump group takes a position in one of my low float issues, I sell into the hype and then buy back as the easy money folks sell out in disgust. When my 2-3 year price target is reached in a few days, I am happy to sell into the hype. |
