Jim,
I'll tell you what little I know (and think). One day, maybe someone will read this board who is more knowledgeable than I. Please take this with a grain (or many grains) of salt.
OTC (or OTCBB) = Over the Counter Bulletin Board
Local newspapers don't normally carry these stocks, have to go to Wall Street, Barrons, etc. (or the Internet, of course).
(I think) most stocks on on the OTCBB are micro-cap (maybe $25-$50M market cap and under?).
On the down side:
Most/all these companies are non-reporting (to the SEC), making these companies/stocks ripe for scam artists (bogus products, dilution of shares unbeknownst to shareholders, bogus books, bogus claims, bogus management).
Companies listed here don't have the financial strength (revenue, book value, etc.) to be listed on the NYSE, NASDAQ or AMEX.
In 25 words or less - WATCH OUT.
On a more positive note (again, my opinion only):
OTCBB is the breeding ground for start-up companies with new technologies and products; the GM's and IBM's of tomorrow? They all gotta start somewhere.
Here is where you'll find the 5-baggers, 10-baggers, and even 100-baggers of tomorrow. Bad news - just like a reserve 2nd baseman on a 2nd rate baseball club, home runs are few and far between.
If you're interested in this company (and more of my opinions, which is about as dangerous as skiing at the North Pole in the nude), I think all my previous posts on this board are still valid. Timing may be off in places, but I've researched this company (and the stock) pretty extensively. I'm sold on it.
Still tons of risk:
VERY small company, even smaller than that.
No guarantees that marketing plan will be successful.
No guarantees that product will be accepted into the marketplace.
Company has very few $ in bank, additional financing probably needed.
A summary of why I like HARD (all IMHO's):
Management is impeccable.
Likewise for the product.
Likewise for the marketing plan that company is putting together.
$4M market cap (+/-).
No hype from company. Management is committed to doing things the right way, 100% reversal from previous management.
Company had limited production (in test batch quantities, more or less) until the last week or two, when expanded production equipment was put into place. Now that NovaCrete is coming off the production line at an increased rate, my hopes are that we'll hear of a nice-sized contract in the near future. Either that or HARD will be reporting one huge inventory at the end of the quarter.
Good luck to you. May your favorite football team win tomorrow (as long as they're not playing mine)!
David |
