Actually I tried the regulators and realize there's a lot they won't get involved in or cannot do regarding pinks. They suggest hiring a lawyer.
I'm really looking for a forum where people with experience filing suits against companies and IR firms can share resources and ideas.
thanks again.
Posted by metal1 on :
might try these guys. though going after pink sheet companies would seem rather difficult considering many of the ones you would be going after are essentially insolvent. what i really don't understand is how the pinksheet market is even allowed to exist. ridiculous. good luck in your search.
Thanks metal. I agree with you about the pinks. I've been in this business for close to 30 years, dealing in regulated stocks until this year. The pinks have been quite an education. Like going to a third world country to do business.
When I find the time I plan on lobbying washington to mandate a single database on which all state SOS filings must be located. I came across a for pay site, but its not a fool proof system. Investors should be able to enter a symbol and pull up every filing in every state they have activity. It ridiculous to have to call/write/search each state looking for the hidden needles in the haystacks.
Posted by bond006 on :
Stock Hunter you have a great idea. As for me I think I have made my last two plays in pinkie land. After this I am going to keep what I have, sell off what I don't want and say good by. The deck is just stacked against you because of safe harbor and you just have to make picks in the blind and I am not used to doing that. You know good stock,good company,trust me ect.ect.ect.
Posted by bond006 on :
But to answer your question no I have never been in a law suite over a pink. But it does not seem right that a ceo could make a decision to go public with the idea before hand of swindling investor's to get there startsome of them make a living out of dilute-r/s dilute-r/s as many times as they can and don't stop until they get pegged as a crook. It really seems there could be some legal action a person could take,because it sounds like fraud to me,especialy if that was there business plan.
Posted by StockHunter on :
Bond, I hear you. Pennyland is no different than anywhere else in our society. The laws and regulations are only as effective as their application would dictate. If we cut off people's thumbs for jaywalking, there would be no more jaywalkers. When we slap a $1000 fine on a business for an activity that nets them $2000, they chalk it up as a cost of business and incorporate the activity into their business plan. Its not just the severity of the remedy, but the likelyhood of application, too.
Penny investors are small, unsophisticated and not well connected as a general rule. These penny CEOs know they are not likely to get sued by investors and the SEC isn't going to get enough flack to prioritize an investigation except in extreme cases. Most regs don't automatically protect investors, they simply provide an avenue for remedy should the investor chose to take action.
The biggest problem is perception. Investors assume their company would not lie or deceive them assuming the SEC would come down hard if they did. Truth is, no one is looking most of the time. These unscrupulous types take advantage of the hopes and fantasies of people not only wanting to get rich, but wanting something to believe in. From reading the BBs I've found that many of these investors are looking not only to make a buck but searching for something more. They display a degree of faith, trust and optimism more often seen in rabid sports fans, cult members or a participant in a John Edward psychic reading seeking closure from a dead loved one. There's a near infinite supply of these people and the unscrupulous types are there for the easy pickings.
I'll be following you out of Pennyland soon myself. Its providing a good education and that's worth something. Over the years I've trusted unscrupulous charactors, chosen rotten banks, bought lemon computers and invested in scam stocks. That's made me an expert consumer, investigative wizard, competent computer junkie, and I'm not too bad at working with bureaucrats, regulators, and lawyers either. But, I've paid enough in my pennies for the education. Time to go back to skating where I know how thick the ice is.
Posted by BuyTex on :
boycott the pinks...reg agencies won't help; leave 'em sitting there with absolutely nada, zip, zero volume...after awhile they'll become self-reporting