New System for Pink Sheet Stocks
Submitted from Pink Sheet Stocks
There has been a significant amount of publicity recently given to the new system created by Pink Sheets for their stocks. The system supposed to provide some transaparency but does it? Here ’s our take and we would love to know yours.
Even though the warning system is a valid and honorable attempt to create transparency in the marketplace, the simple fact is that very few pink sheet stocks are bought by investors with a systematic approach to investing. There is very little due diligence and reading message boards is not due diligence. In addition, examining the financial statements of companies that have little revenues and are in most cases out of cash does not provide an advantage to the investor. The fact is that investing in pink sheet stocks in which I am sometimes guilty is the ultimate speculation. Why, because the odds of winning in these stocks is not good.
