The Blind Squirrel

[Zardiw]

TBS Tip: 10Qs

Tripletail Wednesday, 04/27/16 02:49:48 PM
Re: sandman44 post# 12178
Post # of 12764

It is all quite legal and the legal work is done by a handful of OTC savvy attorneys who trade in clean and dirty shells.

If you read the financials very closely on these OTC stocks you see the big picture. The whole 10Q is basically a big disclaimer.

In between the disclaimers lies the fluff. Everyone focuses on the fluff and never the disclaimers.

If you look at a 10Q, look immediately at the line item called "accumulated deficit". That tells the whole story. Big accumulated deficits over several years means that they company habitually borrows money as its only source of income. This money is in exchange for convertible shares that have a conversion date.

Because this is all vetted by attorneys AND it is a sub-penny, the SEC rarely does much more than a slap on the wrist.

The SEC is now changing all this. These companies are dying out.

The changes started in 2014 and it is ramping up.

z