HITSGALORE.COM (HITT) Message Board

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Microcap & Penny Stocks : HITSGALORE.COM (HITT)

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To: Redwater1 who wrote (885)	5/13/1999 10:02:00 AM
From: Janice Shell	Read Replies (2) of 7056

Can anyone help me understand how you sell to cover a stock if the SEC halts trading? SEC halts are always temporary. Trading stops for the period of time prescribed, often ten days. If the company wants to resume trading as an OTCBB stock, it must find an mm willing to file a Form 15c2-11. Since the mm who signs off is taking responsibility for the content, most are reluctant to put their heads on the block. In order to file the 15c2-11 the company must produce, among other things, current audited financials. If the reason for the halt has anything to do with problems in the most recent filings, they have to be done over. If the company can't find an mm to sign off on the form, once the halt is over it resumes trading as a pink sheet. Normally the price drops to pennies. At that point shorts can cover; in fact sometimes there's a small initial bounce as a result.

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