iTalk Inc. (fka TALK)

[Major Profits]

"THE SEC JUST SUSPENDED MY STOCK! NOW WHAT?"

Had to Google it to find out more.

http://promotionstocksecrets.com/the-sec-just-suspended-my-stock-now-what/

The agency is aware that suspensions are a death sentence, and does not invoke them lightly. Angry investors may rail against Shorty and “bashers,” but the truth is that although the SEC may have originally received tips about problems with the company, they always conduct their own investigation before taking any action.

When trading resumes

Once the suspension expires, the formerly-suspended stock will reopen on the Grey Market. In most cases, it will trade on the first day, though issues that were illiquid before the action may not. In our initial scenario, I described a hot penny that had attracted a good deal of attention that resulted in heavy buying, the kind that would see interest right away.

Its first day on the Greys will not be heartening for anyone holding. Normally the first trade will be executed shortly after the bell, and will be a lowball. Very low. It may take the stock down as much as 80%. Very likely that the person who ventures that initial trade has entered a market order. Don't be that guy. Wait to see what happens in the next couple of hours. Usually the price will tick up a little. But you still have a problem: you're trading blind. There's no Level II, and no bid or ask. You need to decide what offer you think will be accepted. You'll be able to see executed trades as they happen, and they will give you an idea of what range you should try for. Trading is likely to be extremely volatile, but by the end of the session price will be sharply down; a loss of between 60% to 80% is common.

When a very active stock is suspended, MMs are trapped along with traders. If they've been selling naked to provide liquidity, they may be left with open short positions. They'll want to cover as soon as trading resumes, and therefore will be buyers. Do not, however, imagine that those short positions will be gigantic; they'll only provide a brief window in which volume will be high. So time your exit accordingly. Once they've taken care of themselves they tend to lose interest.

The stock may rise a little in the week or so following its debut on the Greys, but if as it does so, volume will decline, making fills more difficult. It's best not to wait too long, and lose your chance at recovering some of your investment. After weeks, or perhaps a few months, price will plateau for awhile, as volume continues to drop. In the end, liquidity will dry up entirely, and the issue will trade only now and then. Price will drift down slowly.

Here's a chart for Southridge Enterprises (SRGE), a particularly stinky Pink scam that was suspended on 28 December 2012, showing what happened in the succeeding two months. Things have only got worse since then.

As time goes by, it's possible that the SEC will finally bring closure, in the form of litigation for fraud. In especially outrageous cases, the Department of Justice may join in with a criminal prosecution. It can take as long as two years or more for that to happen. Do not believe anyone who claims that if there's no further action six months after the suspension, somehow all is well.

shredding-cash-223x300In most cases, suspensions for cause don't result in SEC civil lawsuits, much less DOJ prosecutions. The SEC appears to believe that much of the time suspension alone is enough punishment. Often the people behind the suspected fraud are offshore and out of reach. If the SEC can't collect, it makes no sense for them to carry on. They will by then have achieved their object, which is to stop the fraud that provoked the suspension in the first place. If the company is an SEC filer, it will probably stop filing after the suspension; reporting to Edgar is costly, and is pointless for an issuer stuck on the Greys. After a couple of years of delinquency, the SEC may decide to put an end to the story altogether, and will move to revoke registration. That move will not be challenged.

If you're heavily invested, an SEC suspension is an unforgettable nightmare. If a stock you're playing is heavily promoted, or if those Nasty Bashers have raised serious questions about filings, press releases, or other communications from the company, take profits early and often. Ignoring red flags could cost you dearly if a suspension is invoked. There are no good outcomes for suspended stocks.

GLTA

$TALK

https://www.otcmarkets.com/stock/TALK/quote
SUSPENDED! SKULL AND CROSSBONES!