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Greysheet Trading Forum (GREYSHEETS)

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Last Post: 12/25/2015 3:12:01 PM - Followers: 28 - Board type: Premium - Posts Today: 0


Grey Market The Greysheet Securities Grey Market

Wikipedia says it best: A grey market transaction is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unregulated by an exchange. The two main types of grey market are imported manufactured goods that would be normally unavailable or more expensive in a certain country and unissued securities that are not yet traded in official markets. Sometimes the term dark market is used to describe secretive, unregulated (though often technically legal) trading in commodity futures.

When it comes to stocks, the Grey Market category is for company stocks and securities that currently do not have a market maker in either the Pink Sheets or Over the Counter Bulletin Board. Trade in these securities is done independently and not centrally processed. In short, such exchanges occur outside the usual quoting system, may or may not require the usual SEC filings, and may involve convertible debts, bad debts, warrants, foreign and domestic issuances, and countless other specialized securities which make the market run smoothly. In fact, their placement in the Graysheet market allows the market to operate since companies need a forum for debt issuance and securities which cannot be restricted by the SEC; without such a forums, SallieMae, various foreign banks, and debt structures would fail and make the Unwinding of 2009 looks like a holiday in Vegas. So, when you trade Greysheets, be aware that they are a vital and active market structure with the benefits provided by debt and our trading of debt.

Grey Market The Tools You Need Grey Market

The following is a short list of skills, materials, and other stuff you need to survive the Greysheets:

  • The Ability to Read a Chart -- If you cannot read a chart, then you better start learning or the Greys and iHUB will eat you alive.
  • A Strong Stomach -- The Greys are truly the "Wild West" of the marketplace; replacing the Pinks as the realm of the outlaw. There is little to no solid regulation of Greys and that leads to nearly insane volatility profits. For example, sometimes you can place a bid at par and sell off over the week at 20x par value. NLAI was famous for such flips when it went Grey but was sadly delisted. But in order to trade like that, you need to keep your wits, read the chart, and plan the trade.
  • Know What You're Buying -- The Greys have access to many different types of security; including debt. Ask yourself: "If I buy this, how can I take advantage of it to benefit me?" Although this may sound odd, it's a good question to ask because you have the option to purchase and convert convertible debt just like the "diluters". For example, I traded SallieMae's debt and decided to convert it out. I purchased each share for 880 USD and then converted at 1000 USD; diluting the security. Meanwhile I pocketed the difference and paid a whopping 20 USD in fees. Warrants are sound as well, but you have to read on their conversion rates and valuations since they tend to float with the market.
  • Brush Up on Algebra -- The world belongs to those who understand numbers; in economic, science, and everyday life. Welcome to life! Make sure you're comfortable with percents, how to calculate a discount or premium, and how to compute fees from your broker.
  • Learn on Paper --  When you first start with Greys, be sure to paper-trade using a spreadsheet until you're ready for the real deal. Trust me, this will go a long ways and will keep you from using Tucks Pads on a regular basis.
  • Understand Risk -- If you decide to play in the Greys, then be warned -- it's risky. Although many Greys do file foreign forms with the SEC as to allow proper DD, GAAP and other standards may not be enforced. Also be aware that MMs do not properly trade the Greys and are able to manipulate them at will since they are self regulating and not governmentally regulated. Worse yet, your choice may go BK and vanish overnight; a huge risk. Thus remain aware that you are on your own out here but people in the forum will try to help.
  • A Middle Finger -- Not kidding. I'll be blunt with you since we're adults: There are a lot of liars and dumbasses out here and they will try to pass off a Toxic PK as a Grey. If they do so intentionally, and not just by the occasional accident, then exercise your finger. Better yet, let the forum know in a single post and we'll mop it up.
#107   A grey sheet primer: Pro-Life 12/25/15 03:12:01 PM
#106   If CRGP is found to be blameless we Reptos 09/02/15 07:55:22 PM
#105   Well at least i can post over here.... Wallst_junkie 09/02/15 07:03:59 PM
#104   That seems to be the case. Reptos 09/02/15 06:37:31 PM
#103   I guess we are stuck here for while.... :) Wallst_junkie 09/02/15 06:03:17 PM
#102   Should be more posters here. Any idea how Reptos 09/01/15 01:01:50 PM
#101   Hey, I was wondering if anyone here knew zenvesting 05/20/15 03:54:27 PM
#100   Would like to see LYSCF go for a run Infinity Bagger 03/10/15 09:29:36 AM
#99   Thanks for coming and posting!!! Pro-Life 03/09/15 04:18:07 PM
#98   Nice board, I like it! Infinity Bagger 03/09/15 02:40:52 PM
#97   LYSCF Pro-Life 01/31/15 08:14:45 PM
#96   Lots of mining stocks listed on the greys Pro-Life 01/24/15 02:29:55 PM
#95   Nope, still tumbling like many other mining stocks... Pro-Life 12/27/14 09:14:00 PM
#94   Still watching this market closely as well as Pro-Life 07/08/14 10:06:30 AM
#93   Some are deservedly banished here while others are Pro-Life 05/24/14 12:34:06 PM
#92   I can no longer find a direct link Pro-Life 05/15/14 06:16:24 PM
#91   NATUF seems to have bottomed: Pro-Life 04/14/14 01:08:30 AM
#90   Thanks… FYI, one of the intentions of this Pro-Life 11/03/13 08:22:57 PM
#89   Grey market Q & A forum for shareholders Cassandra 10/25/13 11:23:36 PM
#88   Hi, you said "several have come off the Babbs 08/11/13 06:22:51 AM
#87   Symbol Price % Chg $ Volume Share Vol Trades Pro-Life 12/19/12 11:52:28 PM
#86   Link to Greysheet trading activity on otcMarkets: Pro-Life 11/22/12 05:10:02 AM
#85   is therreany site were a chart is available 10bags 09/26/12 12:25:28 AM
#84   GTGP - contact the staff in the Division Bob Underhill 09/24/12 07:33:12 PM
#83   EFRFF: been beat down... radar worthy... Pro-Life 03/19/11 09:45:52 PM
#82   Why'd it hit the greys? the usual? Whiplash_Investor 01/26/11 07:47:18 PM
#81   GSFVF - Soapy Bubbles 01/26/11 07:29:22 PM
#80   STZYF - Why I like Greys. Soapy Bubbles 01/21/11 09:39:15 PM
#79   Any great pics out there? Whiplash_Investor 01/20/11 04:19:09 PM
#78   No, private company has no public share Soapy Bubbles 01/19/11 02:29:18 PM
#77   thankyou, appreciate you getting back to me. rt wallwizz 01/19/11 11:47:29 AM
#76   It's not private until it leaves all exchanges...the Whiplash_Investor 01/19/11 11:06:06 AM
#75   if a company used to be and otcb wallwizz 01/18/11 08:50:11 PM
#74   Picked up $5K and lost $2K back, so Whiplash_Investor 12/24/10 02:25:17 PM
#73   Agreed. Nonetheless the run was fun to watch Soapy Bubbles 12/24/10 02:15:29 PM
#72   I would hold off getting in for awhile...the Whiplash_Investor 12/24/10 01:19:28 PM
#71   I was lucky and made money on the Whiplash_Investor 12/24/10 01:16:56 PM
#70   Hey Whip -- Yeah I saw that. Wow, Soapy Bubbles 12/24/10 01:13:59 PM
#69   New Grey for you as of 12/23/10 SAEI Whiplash_Investor 12/24/10 10:55:39 AM
#68   Foreign issue - OTSHF Pro-Life 08/25/10 07:02:43 AM
#67   There are literally hundreds/thousands of Greysheet companies: Pro-Life 06/28/10 12:27:10 PM
#66   KMRPF - see the reco here - Pro-Life 02/16/10 10:50:44 PM
#65   ARAFF is now Pinksheets current info... this is Pro-Life 01/27/10 10:22:31 PM
#64   cnsf-fallin from .03 to .0001 2 month ago, ash111 01/15/10 06:50:02 PM
#63   GHTI Carlito 01/03/10 03:07:46 PM
#62   ‹(•¿•)› Weird·o 10/13/09 11:44:51 PM
#61   Here is a good one I found - Pro-Life 10/06/09 10:15:28 PM
#60   link please? goBFHJgo 10/06/09 03:25:53 AM
#59   Here you go: Soapy Bubbles 10/05/09 10:36:37 PM
#58   Oh, It's one I like to flip. I Soapy Bubbles 10/05/09 10:35:14 PM