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Microcap & Penny Stocks : ARET (Formerly KLHE) -- Ignore unavailable to you. Want to Upgrade?

To: Roo who wrote (3477)	2/12/1998 8:43:00 AM
From: Mr. Jens Tingleff	Respond to of 4594

To ALL incl our company: I picked this one up on another thread - It contains incitament for getting IR up and running. QUOTE: WHY Doesn't MY Stock get "Discovered" by Wall Street? I ask Bill Mathews if I could post this on SI and he said Fine. It is out of this Feburary issue of the CHEAP Investor. WHY Doesn't MY Stock get "Discovered" by Wall Street? "The stock I invested in issues very positive press releases, yet Wall Street doesn't seem to care. We can't tell you how often we hear from frustrated investors in low-priced stocks who feel the same way. It's easy to think it only happens to their stocks. In reality its difficult for ALL low-priced stocks to get Wall Streets attention. Our research has unearthed some interesting statistics. Over the last three years, the number of stocks listed on the Nasdaq has increased by 50%. In addition another exchange called the OTC Bulletin Board was created a couple of years ago and it includes over 7,000 stocks. Also there are a couple thousand new foreign stocks, the majority of which are loe priced. This means a lot more competition for Wall Streets notice. On page one, we wrote about TCC industries. It took six years for Wall Street to get excited about this NYSE listed company. Thats pretty depressing. Perhaps the toughest competition comes from the well financed OTC Bulletin Board companies that are long on hype and short on substance. This exchange has become a haven for unscrupulos stock manipulators because there are no listing or reporting requirments. It's easy to " exaggerate" a company's assets and potential when it doesn't have to report financial results. For this reason, The CHEAP Investor doesn't recommend stocks listed on the OTC Bulletin Board. Fortunately this will change as Nasdaq is forcing companies to regularly file financial reports. This could kick as many as 3,700 companies off the OTC Bulletin Board. In addition Nasdaq is instituting new listing requirments for the National Market System and SmallCaps market. Getting rid of junk companies should reduce the competition somewhat. The old theory that if a company does its job and increases sales and earnings, Wall Street will discover it, just doesn't work any more. In todays market, a company MUST have a full time investor relations department to get its information to shareholders, brokers and the finacial community. Despite the tremendous increase in the number of low-priced stocks. The CHEAP Investor has recommended numerous stocks that were later "discovered" by Wall Street. We will continue to pursue quality low-priced companies that make a commitment to getting their story out to Wall Street to help increase shareholder value. QUOTE END. Kind regards Jens