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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (2413)	7/8/1999 2:50:00 PM
From: Kip518	Respond to of 2506

So I wonder if now that there are live quotes, we will now see the online touts, websites and email lists shift their attention to the pinks. Well, you know those folks aren't just going to go away. ;0} Clearly, "pink sheets" loses its sting with this move.

To: Q. who wrote (2413)	7/8/1999 3:05:00 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 2506

John, some musings about market segmentation, I have followed the brief discoussion about the changes and believe that it may have big impacts on the Pink Sheets, and OBB. -The "Pink sheets" get a big load of eligible shares, so it is understandable that that segment will be electrified and its infrastructure boasted for the reasons mentioned. The technical progress of the OTC market should somewhat improve the market quality, even to the individual shareholder as the trading opportunities may improve and the market will be easier to monitor. Many companies and their stock, being "house stock" of some known brokerages should earn money on trading the stock, even consider that some of these companies have done private placements and stock must be resold somewhere - so there will be some interest in a working market. -A bigger impact will be set on the Bulletin Board itself. Much has been done already, even on SI. Many persons are trading BB stocks, even short sellers are dealing with BB highfliers, something unseen, or very unusual just one year ago. The liquidity and market maker coverage of hot or "in" BB stocks is reasonable, liquid BB stocks may have 10 MMs or more. This is somewhat an anticipation of the improved BB quaity by the market. Finally, the big cleansing should improve the quality of the average BB company by far making it another nasdaq segment, so the once notorious BB should gain credibility overall. Of course, the BB market is else but perfect in terms that the access is limited - only few online brokers allow access and short selling is still best done offshore. This should improve as well. -But what is the big advantage of the BB? Manning rules do not apply, the BB is a market makers board, as the nasdaq was quite some time ago. Less control to the investor, more power to the MMs, and there are no ECNs which should make a market more efficient and trading costs lower. A possible development would be the combination of the nasdaq SmallCap market, and BB (hence an abolishment of the SC). The nasdaq small cap is not very different: low listing standards, no uptick rule like the BB, a tendency of keeping SC stock not marginable (at least provided by broker inhouse margin policies). SO - Small Cap companies could elect to augment capital and change to the NNM, or elect to be listed on the BB. And it is too often the tiny SC company with little NTA which is already on the verge of being "delisted" or relisted on the BB - so why not doing it one big move? In general, the improved filing standards imposed on the BB should do something good, IMO. is.