Bob, The news coverage was very misleading to begin with on this issue. I agree with you, it is pretty tacky for someone to try and scare others out of there OTC-BB investments just to draw them to the listed stock that they are promoting.
Cheryl
Here is some good information I received from BBNS, an e-mail News Service to which I subscribe, on this issue. I received this December 10, 1997.
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It was a bad day for most of the micro cap stocks after CNBC and the other financial networks carried a story about NASD and the SEC wanting to delist 3400 bulletin board companies. Except for a few issues, most of the stocks were down. While that story makes a good headline, it is pretty far from reality. While the networks made it sound like this will happen in the next few days the reality is that companies who are non-reporting will have time to become a reporting company on the OTC Bulletin Board. I have heard estimates of anywhere from 3 to 12 months as the time frame for compliance.
This will not boot all 3400 companies off the OTC Bulletin Board, just the ones who can not comply with NASDAQ filing requirements. As long as companies are given sufficient time to complete audits and the other necessary filing requirements, this will be a very good step for both investors and the companies. Of the companies we follow, all are either fully reporting or plan to be in the first quarter of 1998. While this is a very important matter, I think the media scared the public instead of informing them. I know I had a ton of phone calls and over 100 e-mails today asking for clarification.
Bacon Butt News Service (BBNS) |
