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Pastimes : Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: KZAP who wrote (2297)	3/5/2001 6:24:36 PM
From: Joe Lyddon	Read Replies (1) \| Respond to of 2402

OTCBB stocks can be, and usually are, very deceptive in that the bid/ask spreads can be very large. . . . . . if the spread is very large the last transaction can be at the bid or the ask. . . let's say the first day, it's at the bid. . . the second day, the last transaction could be at the ASK. . . Neither one of them changed at all. . . BUT it appears that it did. . . and the normal valuation, as done here, you have a gain of 25%-50% just based on the spread and the last transaction price. The OTCBB also is not as liquid as the other exchanges. . . You might not be able to buy/sell when you really want in real life. Also, OTCBB stocks are primarily present only for them to hyped, sold out, and then go down to virtually nothing. . . The MM's have to get their return. . . they do. . . then they go on to something else. As a general rule, that is the case. The above reasons are why I recommended NO OTCBB Stocks allowed. Thank you, Joe