Trading on the OTC:
From time to time people will run around Raging Bull, Yahoo and Silicon Investor claiming that their OTC pick is going to 20 and higher. This almost never happens. It is also rare for OTC stocks to move to the Nasdaq. This arena is risky enough as it is. We want everyone to be SMART traders. And that comes with awareness.
In my opinion the OTC is not the sort of place to look for bargain stocks. Also in my opinion. . .
70 percent of OTC stocks are outright scams for the purpose of selling worthless stock.
20 percent should be out of business, have no revenues, are run out of people's kitchens, or SHOULD be considered hobbies, because they have no idea how to
run a company.
9 percent are honest companies trying to make a living.
That final 1 percent are VERY difficult to find. I am talking about real companies, with real products and customers and real revenues that translate into actual earnings . . and verifiable assets located in the continental U.S., not some casino located on a ship somewhere in the Mediterranean Sea. I remember USTI as a real company with actual earnings that happens to be at a nickle. Then when I try to think of another. . . I go blank. That is how difficult OTC stocks with positive earnings from real products/services are to find, in my opinion.
Steer clear of reverse splits, reverse mergers, shell companies playing the shell game, offshore debentures, etc. Also, Canadian companies, Las Vegas based or Nevada corporations, Denver based, South Florida based and many Dallas based companies are a no-no. No minerals or fossil fuels.
NON-REPORTING COMPANIES:
Companies that refuse to file with the SEC “Non-reporting” will not be discussed. This gives them a license to lie. NON-REPORTING companies can claim anything they want and are not accountable for their claims. . . only what they report. The number one city in the world for generating thousands of penny stock scams is VANCOUVER, second is DENVER, third is LAS VEGAS, then it is a toss-up between DALLAS, BOCA RATON, HOUSTON, NEW YORK, etc. This information can be found at: sec.gov Remember MOST penny stocks are scams.
When you are told about a sure fire winning penny stock, consider the source. Look up other stocks that person recommended. . . and their corresponding performance. Ask that person how they are playing the stock and when they plan to sell. If you do play, get out ahead of others. Holding too long [usually because of some "pending event"] is the single biggest reason for losing on the OTC.
Check if the OTC words by placing “adj” between the words when you search here: sec.gov Also, learn to do full-text searches on the symbol and find out who and where the stock is being discussed. The easiest way to do this is here: insighters.com Check profiles of those pumping, to see what else [if anything] they are pumping. DO YOUR OWN DD.
NEVER BUY ANY STOCK BECAUSE SOMEONE TELLS YOU TO. . .
If you do. . .and you lose. . .you deserve what you get.
Everyone is here to make money. . some in more honest ways than others. We will not allow cannibals to come here and push their dogs on unsuspecting newbies. So be forewarned. Never waste time fishing in a polluted lake. . .
Rande Is |
