Last week shareholders were surprised to find that Anglo American (OTC: AAUKY) had moved from the Nasdaq to the OTC "pink sheets" with no press release, news or explanation on the company website (see AAUK: Now you see it, now you don't).

After a few inquiries to the company, I received notice that the site had been updated with a full explanation. What I learned is that the Nasdaq listing was not done by Anglo but by several banks that held unsponsored ADR shares and were trading the stock.

Continue reading Anglo American explains move to OTC

Anglo American explains move to OTC originally appeared on BloggingStocks on Thu, 13 Aug 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading AAUK: Now you see it, now you don't

AAUK: Now you see it, now you don't originally appeared on BloggingStocks on Mon, 03 Aug 2009 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Credibility and transparency in the Pink Sheets market?

Credibility and transparency in the Pink Sheets market? originally appeared on BloggingStocks on Tue, 14 Apr 2009 11:10:00 EST. Please see our terms for use of feeds.

While the shareholders and board of directors at at Whole Foods Market (NASDAQ: WFMI) wish CEO John Mackey would pipe down, and the board at Overstock.com (NASDAQ: OSTK), if it exists, seems indifferent to CEO Patrick Byrne's Regulation FD-flouting rants, Herb Greenberg has a nice WSJ column (subscription required) on executives who take a different approach. To borrow a line from Calvin Coolidge, these companies have decided that nothing they don't say will do them any harm.

The piece talks about a few thinly traded, closely held companies, several of which list their shares on the OTC markets, which tend to be highly illiquid and provide little exposure. These companies don't hold regular conference calls and don't present at investor conferences, but some have actually provided investors with very strong returns.

The highlight of the column is a company called Expeditors International (NASDAQ: EXPD), a transportation and logistics business. Expediters responds to shareholder inquires by filing 8-Ks with the SEC providing pithy, and often bitchy, responses to questions. The latest series is one of the strangest 8-Ks I have ever seen.

Continue reading The Calvin Coolidges of capitalism: Is quieter better?

The Calvin Coolidges of capitalism: Is quieter better? originally appeared on BloggingStocks on Sun, 22 Jul 2007 09:40:00 EST. Please see our terms for use of feeds.

While the takeover battle between the NASDAQ and the London Stock Exchange rages on, the lesser-known American Stock Exchange (AMEX) has hired Morgan Stanley to begin the process of demutualization, presumably setting the stage for an initial public offering (IPO). The IPO comes after numerous exchanges/trading companies have gone public in recent years including the Chicago Mercantile Exchange, New York Stock Exchange and, regrettably, Refco.

The AMEX is definitely the least-respected of the major exchanges. I once mentioned a company to an older stock broker friend and asked him what he thought of the company. The first thing he said was "Ah! The AMEX! That's where bad stocks go to die." The AMEX will also continue to face competition for listing from the OTC market and even the Pink Sheets, where it is taking steps toward greater transparency and scrutiny of companies, perhaps setting the stage for a better reputation. The Pink Sheets is widely known as a great place to find penny stock pump and dumps.

In addition, the high costs of Sarbanes-Oxley will, in my opinion, lead more companies to seek private funding, leading to fewer IPO's in the future. The AMEX may do great, but it's not an IPO I'll be buying into.

AMEX mulls IPO originally appeared on BloggingStocks on Thu, 25 Jan 2007 13:49:00 EST. Please see our terms for use of feeds.

Over the counter (OTC) stocks interest me but the pink sheets appear to be too risky. What is it I find most intriguing about OTC stocks? They allow a person with more nerve than money to break into the stock market game. Pink sheets and penny stocks are historically the most risk prone investment vehicles. They're kind of like a trip to the casino. Going in there requires the investor to be prepared for the real possibility of leaving some money behind. OTC stocks on the other hand, provide a noticeably bit more security and some are actually stocks from very solid companies that are just unable to meet the price and volume requirements of the large stock exchanges.

The OTC Bulletin Board is the place to find out what OTC stocks are available. There are surprises on the OTC with some business names we all recognize. Others, I've never heard of. There's one thing for sure, it's a lively place where there is money to be made. If someone is entering the sport of stock trading, the OTC BB can be an excellent place to get started in my opinion.

OTC stocks require some special investment knowledge. Knowledge not in the sense of special analytical skills, but in the sense of having the desire to pick some winners and the patience to do some foot work. Making prudent investments in OTC companies, requires learning about them. There must be willingness to do some research about potential prospects. The more research done, the higher quality the knowledge will be. The trick to the sport is to find the companies that are ready to go upward. If the timing is right, then the possibility of actually making some dollars exists.

I'll be writing more about getting started with stock trading. Taking things easy may be my best bet. It's been an awfully long fourth quarter this year but let's just hang in there.

OTCBB and the Pink Sheets... Why would I like them? originally appeared on BloggingStocks on Tue, 12 Dec 2006 10:34:00 EST. Please see our terms for use of feeds.