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I have been reading over your past posts and must say you are very knowledgeable. Today, I decided to cease trading in pennies altogether and move towards Index Funds and Bonds.
I will let the money I currently have in pennies ride without additional investments and divert future investments into index funds and bonds. I am going to monitor the pennies for positive exit points. I will also look at companies trading on the majors and pay closer attention to what they are saying in their statements (i.e Unaudited Filings, etc).
I believe you have saved me from losing thousands upon thousands of dollars in addition to the stress that comes with it. Thanks for taking the time to share your knowledge and point me in the right direction.
Max, why don't you list 5 picks for the next 30 days and we'll see how they do against, say, the Dow. Let's assume you buy at the ask and sell in 30 days at the bid.
BTW, having a stock skyrocket doesn't help if the shares can't be sold in significant quantity. Easy to buy junk stock; often very hard to sell without pulling down the price 20%. I see that sayuncle had a problem along those lines and it wasn't fun!
Par Value means nothing. In fact many shares have no par value.
I'll sunrise you by saying the Buffett method won't be a home run for most people, although it will CERTAINLY work out better than "playing" pennies.
Buffett is a brainy guy with great connections and savvy associates. Moreover Buffett gets deals that aren't available to most of us, like his recent preferred stock deal with Bank of America. (as we've seen so far, he doesn't always win)
But his biggest advantage--one that's almost unique to him--is his army of followers, many of whom control fortunes. To some degree almost everyone on Wall Street (and far beyond) watches him for clues. George Soros has the same advantage. Maybe two or three others do.
My own stock money has mostly been in index funds for many years. Buffett himself has spoken well of index funds. I make no attempt to beat the market because I know ***I*** can't do it. John Bogle, the founder of The Vanguard Group, says very, very few people beat the S&P 500 for long.
I make no attempt to TIME the market because I (and Buffett) know that NO ONE can do it. I KNOW that most investors, even fairly experienced ones tend to buy at peaks and sell at bottoms. Buffett would agree. University studies suggest that to be the case.
For years my money has been in a roughly 50/50 mix of index funds (and a few blue chips for tax reasons) and bonds... in my case mostly muni bonds. I don't sell stocks except for tax-loss advantages.
For the past decade or more, that simple method has probably beaten 99% of IHUBers and 80-90% of other investors including many pros. Even during the dot com days of the 90s I probably did better than most investors. And my heavy bond component not only helps the investment returns, but it provides for much better nights' sleep.
depends in pennies it's hard to base on intrinsic value, i look at the PAR VALUE and it's Share Structure (10c and lower) besides all the other "DD" stuff. i am that type "Set it and forget it" it's better 4-5 instead of 15-20 stocks, i tried it and i don't like putting all in 1 or having to many, i do have some lotto plays that i am holding based on some basic DD and/or speculation on a upcoming hype, but those i say to myself the money is already lost thats why i call them lotto plays :P
it takes only one that skyrockets to make up all your losses - previous losses and gives you huge profits.
but when your comfortable the way you trade with good Money Management it will pay off in the long run, also whats said on most boards is BS listen or follow traders or boards carefully.
either your a flipper or a holder or both, if it fits your style and it works you gotta stick to it without getting wifey upset :P
I will be more of the set it but monitor it every so often type. While there are pennies out here doing real business, I won't be a part of the flipping crowd....too sharky for me.
The plan is to find about 4 companies - eventually I want to be invested in 10 companies - and apply the Warren Buffet principle to them: Trading less than their intrinsic value, written off by others and shares are currently trading at a discounted price.
I officially wave the white flag in chasing pennies and following P&D posts / tweets / e-mails. Luckily, I sniffed out 2 companies that are actually producing revenue, making a profit and have a real business that does not depend on selling shares and releasing PRs.
Trying to follow all of the zillions of "XYZA going to the moon" type posts / tweets / e-mails is mentally exhausting and eventually exhausts your brokerage account.
The game plan is to watch for exit points in the POS penny stocks that I currently own and to roll that cash over into the two companies that are experiencing positive growth. I'm done with the pipe dream of penny stocks and will be taking the Warren Buffet route of investing: slow, steady and with much due diligence to find strong companies that are trading below their intrinsic value.
Netflix IPOd at $15 and hit $25 its first day of trading in 2002: Like most highly successful stocks it began trading on the NASDAQ immediately.
http://www.internetnews.com/bus-news/article.php/1143801/Netflix+Goes+Public+at+15+a+Share.htm
Love the answers to this anti-penny article: I know MSFT IPO'd on the NASDAQ and was often over $100 in its early days. WMT wasn't a penny. Nor Mcdonalds. Nor Netflix But the poster knows that.
thats when 2 trading accounts comes in Handy LOL !!!
i agree trading his "life savings" is not a good idea, but also trading not enough won't help either, better to save up the little amounts into a big amount example 1k or 2k then trade, flip the crap out of the mindless stocks that shows lots of interest building or Chart Bottom and/or Momo plays or "DD" really hard on 1 or 2 and set it and forget it style "LongTerm" it's rare less than 5 % but it does exist in the subpennies.
Thats my opinion on trading subpennies :)
Some Good Reads Below
-10 Advanced OTC Axioms
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64630875
-25 AXIOM'S OF TRADING (by Vantillian)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64630746
-BEFORE BUYING OTC PENNYSTOCKS The Basics
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64635847
-Pinkie dictionary
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64571561
-8 WAYS TO RECOGNIZE A POTENTIAL PUMP & DUMP
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64379728
$GLTA
If you're keeping your wife informed you probably haven't crossed the line. Believe me, "players'" worst fear is their wife opening the brokerage statement and discovering the extent of the damage to the family, the kids, and retirement.
Pennies are no more about making money than slots are about making money. With slots, at least, losses go to shady Americans. Pennyland involves overseas criminals, disbarred lawyers and censured brokers, and sometimes scary people who hate America: People who are way worse than merely "shady."
Your penny losses will probably meander thru various Caribbean banks and Euro tax havens before ending up lord-knows-where.
Listen to your wife.
That post sums up why my wife don't want to put our savings in penny stocks. Believe me, I was thinking about it as I was infatuated with the big "gains" people brag about.
I play with a relatively small amount ($75 every week). That way, I can play the penny slots, I mean stocks, if I want to without breaking the bank. The wife is happy because we continue to build our savings and she knows that reserve won't be played in the market. The wife doesn't flinch at $75 a week but $1000 is another issue.
I did make the mistake of taking a loan for 10% of my 401(K) and playing the pennies. Yup, I lost the cash in penny investments. That won't happen again and of course, it makes the wife even more vigilant against me playing more than $75 a week in pennies. Even if I "hit the jackpot" in pennies, $75 is the limit on my play money.
You may lose your trading appetite after reading this:
"An IHUB post from 2006:
'This has been a tough few years.
At this point I consider my investment in CMKX all but lost. It was a very large investment. I told my wife that the situation with CMKX was unique, and that justice would prevail. We don't speak much about it anymore. After all I assured her that there are good companies out there to invest in.
So I have slowly been saving up to reenter the market, assuring my wife all the way. So back in I go. Trying to due my DD as a wise investor.
This month alone, I lost a lot of money in CSHD, and the last of my three years of savings again today in SLJB.
If it is not the naked shorters, it is CEO's outright deception to steal from the investing public. I mean If you can't invest in a company like SLJB that has been in business for 25 years, what help is there with any company.
You would think that with CEO's going to prison for years, that these directors of these companies would show a little restraint in their scams. Apparently not.
Well, I really should not be writing this on this board, I should be telling it to my wife. However, I don't have the courage to tell her that I have lost our life savings again.' "
Now read some of my old posts. You'll find that I'm utterly consistent in my hatred of junk stocks especially Chinese stocks with scam accounting. I don't promote any stocks. That's why you can trust me. Heck, I think I don't own but two or three large cap stocks that have boards on IHUB.
You'll find that the stocks I bash tend to collapse. The stocks I own tend to... well they don't collapse. LOL!
If you could read my posts from the dot com bubble days you'd find that I was about the only one on Raging Bull advocating buying bonds and bank CDs. Bonds paid 8% and Bank CDs paid 5-6% then. I wish I had taken my views to the max and put everything in 30 year maturity 8% AAA bonds back in 1999!
What stocks do I own? Index funds and a few NYSE blue chips. Currently all of my stocks are audited by Big 4 CPAs.
I read penny boards because they are wonderful contrarian indicators.
Whew! You gave me meat, potatoes, vegetables, a snack, dessert, an ice cold drink all in one through your three responses. A lot to digest but it is all very nutritional.
Thanks a lot. I appreciate it.
Learn from SEC litigation, not from penny stock tout boards
http://www.sec.gov/litigation/litreleases.shtml
After you've read a few hundred SEC cases (as I have) you'll begin to understand pennyland.
Warren Buffett doesn't buy pennies; why are you buying them?
Why no "Dow Average" for penny stocks? Actually years ago there were such averages but they fared so dreadfully that there was no incentive to do the complex work required. Most hot pennies plummeted >90% in 2000-2002, and never came back.
No one in pennyland - whether promoters, brokers, MMs or the addicted "players" themselves - has any desire for the truth to be known. Not only do pennies fall on average, but they always fall on average, year after year! Only for one year in the past twenty, 1998, did penny stocks do well. And they quickly lost all of that gain and more.
That's why there's no "Dow" Average for the OTCBB or the Pinks.
The stocks that rise 100X or more are usually illiquid shells that neither you nor any other outsider hears about UNTIL THEY ARE READY TO PLUMMET.
The shares rise on matched trades where two people flip shares back and forth at ever-higher prices. Easy and cheap to do. Those stocks usually have no boards on IHUB and may have just one MM. They aren't publicized. As long as almost no one is selling it's easy to MANUFACTURE a hundred-bagger to attract suckers. It's all fake!
"For you guys who catch the 100s to 10,000s percentage increases...:"
Who does that? Penny boards are loaded with liars. Have you ever heard of a multimillionaire who made his fortune in pennies? I never have, and I've been investing for decades.
"I am sure I am missing some things"
You are missing that NO ONE makes significant money in pennies. It's impossible. Most long term players are gambling addicts. Or they are shills.
Trade for Trade status = Good or Bad ?
"shifting any security to trade-for-trade certainly protects the interests of the existing investors and it also keeps speculative forces/players at bay from manipulating large intra day movements of the price."
you have a good range of tools already for pennyland, but if you add twitter and ihub but chosing wisely which user or board to follow you will get good tips on stocks depending on your strategy, also tools like Equityfeed or other stock scanners are usefull to give you good signals or alerts.
Look in the ibox theres lots of links i posted, and for some Good ihub boards look under "EDUCATIONAL BOARDS & Recommended boards"
For you guys who catch the 100s to 10,000s percentage increases: How in the heck do you sniff those stocks out?
What's a typical DD session like for you?
I find it amazing that some people can get in at .0001 and ride that stock all the way to .1 or higher. I have yet to find a .000x that rides that high. What are you guys sniffing out to suggest buying in, sitting and riding it up?
For me, I tend to look at current SP, 52wk range, A/S, O/S and float, whether company has done R/S and how long ago, any recent news, volume over x amount of time, Level 2s, management, set up Google News Alerts for info pertaining to the stock (company name, execs, stock symbol, industry), customers, financials and pending news.
I am sure I am missing some things or focusing too much on some specific area. Any feedback you guys can provide to help me sniff out the winners is appreciated. I must admit that 52wk and current SP got me quite a bit. Thanks.
"NIR’s strategy of investing in distressed and start-up companies began to show signs of failure by mid-to-late 2007. Many of the distressed companies to which the AJW Funds had made loans were by then essentially defunct or on the verge of filing for bankruptcy. The SEC alleges that Ribotsky made false and misleading statements to investors while his hedge funds were struggling to create the illusion of success."
This case involves many active IHUB trading stocks
NEWS: "The SEC alleges that Corey Ribotsky and his firm The NIR Group LLC repeatedly lied to investors to hide the truth that his PIPE investment and trading strategy was failing during the financial crisis. For example, Ribotsky falsely told investors that despite the adverse market conditions he could liquidate all of the PIPE investments in 36 to 48 months — a practical impossibility given the size of the investments. Meanwhile, Ribotsky misused investor money by writing checks to pay for personal services and such luxury items as a Lexus, Mercedes, and Rolex watch.
“In a classic betrayal of trust, Ribotsky stole from his investors and falsely assured them that his struggling hedge funds were thriving,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “This enforcement action reflects our continuing commitment to bring to justice individuals and companies that committed fraud during the credit crisis.”
http://www.sec.gov/news/press/2011/2011-194.htm
i have a better one CWRN, went from 0003 to 0.3c now thats a good run :P now it's in sleep mode between 007/008 range.
or MMTE from 0003 to 005, now it's almost back where it was tho :)
just need good timing / patience & DD of course IMO
i actually did research on INBG lol ...
it did a nice run, but those stocks are good for flips, gotta get in/out at the right time.
heres my DD on the bad stuff about INBG
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66170640
Traders aren't good at making money but they are likely to lie about it!
One of Bar's many time-proven investing rules: Most people who think they're doing well in the market have no idea how poorly they're actually doing.
http://bottomline.msnbc.msn.com/_news/2011/09/27/7993962-traders-more-reckless-than-psychopaths-study-shows
"Disturbing new research about financial traders and their personalities may shed some light on the behavior of Kweku Adoboli, the so-called “rogue” UBS trader who allegedly lost the bank $2.3 billion through unauthorized trading.
A new study from a Swiss university finds that financial traders are more uncooperative than psychopaths and that they have a greater tendency for lying and risk-taking."
http://bottomline.msnbc.msn.com/_news/2011/09/27/7993962-traders-more-reckless-than-psychopaths-study-shows
i have a ? for someone, anyone. FEEL just went to no bid, i think, and one mm on the ask, if i am reading the L2 on askblasters right. Who is CSTI??? Never seen them on the L2 before until now. No other MM's are showing up on the bid or ask, what is going on, is this good or bad?
of course it's no bid now, but did it not go up 11x in 2 days?
INBG doesn't even show a bid now? Is THAT the best example you have?
actually, if you play it right, $1,000 could turn into $10,000 or more:
here's a .0001 stock that went up 11x in 2 days
INBG .0001 merger news:
International Building Technologies Group, Inc. Signed a LOI to Enter into a Merger with a China Petroleum Storage Facilities Company with Paid-in Capital of USD8.8 Million and Assets Worth USD54 Million According to a Recent Appraisal
Jun 2, 2010 8:00:00 AM
Copyright Business Wire 2010
monda2frida
Thursday, June 03, 2010 9:42:30 AM
Re: ToyotaMR2s post# 69798
Post # of 113139
INBG .0011
How do .0001 stocks perform?
About 18 months ago I created a "model" portfolio of a dozen .0001 stocks ("stocks that can't go lower")
Since then two have done reverse splits and have continued to fall. The small number of reverse splits suggests that many .0001 companies have given up. Few people are now playing pennies. About half have no bids; those stocks can't be sold now.
One has been revoked by the SEC. Worthless.
Have any gone up? Not one! Many just sit and sit with zero bid and .0001 ask. Hard to say for sure how $10,000 invested in those stocks would have done. Many are so thin that selling would further depress the shares. My guess is $10,000 might now be worth less than $1,000.
Thanks...it also made my head spin :) Penson is causing lots of problems now for everyone in the pennies, lots of people are switching brokers left and right because of the non-dtcc eligible fees brokers need to charge, just really annoying in all.
Ways of a Market Maker: Market Maker Speaks Out
I was an OTC MM for about 10 years ending in the late 80's. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. By and large most MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade.
They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped into being short in dealing in a fast moving market. Reason being; most of the MM's in this stock are what are called "wholesalers" this means they don't have retail brokers "working" the stocks.
So they have to rely on what's known as the "call" from larger retail houses. If a "Big" retail firm like an E-trade calls up a market maker to purchase say 5,000 shares of a stock, they expect to get an "execution" from that market maker. If he turns them down, or only gives a partial then the "Big" firm will go to another MM.
If this second MM "fills the order" then that "Big" firm has a moral obligation to continue to give future "business" in that stock to that MM who performed (his life blood). This will go on until he "fails" to perform and so on.
Contrary to popular opinion the "Big" firms Do NOT neccessarily go to the "Low Offer" to fill a buy order (Or high bid for a sell). They "Go" to who they think will perform to fill the order and expect that MM to "match" the "low offer" in the case of a buy (bid in the case of a sell). Even though this MM might in fact be the "high bid" and not really want to sell any more.
As a wholesaler he must perform or he will get a reputation as a "non-performer" with the "Big" houses and will cease getting "calls" which means he will soon go out of business. I mentioned above that this activity is very significant to BB stocks. I say this because most of the trades in these BB stocks are "unsolicited" and are done through discount houses.
With the above groundwork laid, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision.
Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks.
But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever".
Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). _________________________
Finally the market closes for the day and on paper he may look all right in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them.
Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread.
Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon.
Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over.
Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.
This technique works about 9 times out of 10 particularly in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience."
posted by Lowman http://investorshub.advfn.com/boards/read_msg.aspx?message_id=15625415
Scary article Max. I read Chapter 19 and my mind is spinning. I follow you on the TYTN board and really appreciate you sharing your knowledge because I am a newbie to this world
Penson Financial Global Bust-Out: How the Mafia-Jihadi Nexus made them Big
in 2008, Penson retained that status—the biggest & most powerful brokerage on the planet
Posted on 09 July 2011 by Mark Mitchell
Please Note - Very Long Read but interesting info
$POS Penson
New non-DTC list UPDATED 9/16/2011
(thanks to Mikey aka xbigshot)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66764285
Development Valuation Cycle Video
The Development Valuation Cycle is explained by South American Silver President & CEO Greg Johnson and how investors can use it to help identify quality investments in junior mining and exploration companies.
Watch Here
SEC Announces Roundtable on Microcap Securities
STT s back up now. I made it over there finally
yea its a new site now. I remember seeing someone was trying to sell it. O well
IDK...i think they are in the process of merging databases or under maintenance, im only a user will wait a couple of days to go back on
What happened to the STT site, any ideas?
What Triggered Pensons Problems...
whats funny about it is that 3 months later we are paying the price for their own stupid mistakes ;-\
> May 21 2011 Penson Clearing Firm Rattles Investors
Thanks for the links. I like the DTC lookup one. They need to add those symbols that Zecco put out bc I just checked 3 that I know arent DTC eligible and they are showing eligible.
Penson's restructuring plans & Letter of New Low price Security Policy
> Penson Worldwide plans restructuring, posts wider Q2 loss
Penson under investigation Over Possible Violations Of Securities Laws
> Penson Worldwide Inc Under Investor Investigation Over Possible Violations Of Securities Laws
Multi Class Action Lawsuits Against Penson Worldwide
> Thursday, 25 Aug 2011 06:01pm EDT
Finra's Daily Short Sale Volume Info
An explanation of Finra's daily short volume
The daily short interest report from FINRA is as widely misinterpreted as any report ever put out. Yet, once a few basics are understood, it becomes very logical. The huge short volume seen in the daily reports are almost instantaneously covered; within a few milliseconds or a few hours at worst. The best explanation of this report, that I've ever seen, was posted by "Dave Patch" of "Investigatethesec.com."
Short Sale Volume Reporting’s are deceiving.
I spoke to FINRA today and found out some very interesting things that until now I did not fully understand. I knew there was something wrong with this transparency of information but was not 100% sure what it was. I think I have my answer and it was enlightening.
I was first directed to the Notice to Members memo dated 9/29/2009
http://www.finra.org/Industry/Regulation/Notices/2009/P120045
The individual I spoke with wanted to make clear that to maintain proper trade volume reporting accuracy, a trade with multiple legs in the trade would only be reported once in the volume reports. The example given would be.
Investor A is long 100 shares and wants to sell. They enter the order through their broker that is routed to a market maker. That market maker will go out and sell the stock into the market before they have bought the stock from you/your broker to close out their account. They do not take possession first as there is no guarantee they can sell the order into the market. By this Notice, the actual sale INTO the market is a short sale because the market maker sold the stock into the market BEFORE they had purchased the stock from you. It is a technicality since they know there position will be closed out minutes later when they go in and buy your shares. To avoid doubling up on trade volume and distorting the picture, only the sale into the market (consolidated tape) is recorded and not the second leg which was the sale transaction between seller and market maker.
So, this is why the short sale volume is high but also why the FTD’s and bi-Monthly short interest reports are not showing any indications of this volume. The short isn’t really a short it is the execution of a long sale by a market maker.
$FINRA
$SHORT
(posted by pantherj)
Canada's Anti-Spam Law Affects U.S
Aug. 19, 2011 6:30 a.m.
TORONTO -- U.S. businesses who do business with Canadian firms may have to change the way they approach electronic communication starting this fall. That's when Canada's new Anti-Spam and Online Fraud Act comes into play, and it's one of the most rigid in the world.
The new law has serious implications for any business that sends commercial electronic messages, including e-mails, texts, instant messages, or social media messages, to customers or suppliers in Canada, according to Barbara McIsaac, counsel in the Ottawa office of the law firm Borden Ladner Gervais LLP.
The new act, which is designed to prohibit unsolicited and misleading electronic communication and online fraud, outlines a number of new offenses, enforcement mechanisms, and severe penalties of up to $1 million for individuals and $10 million for organizations. Businesses must move swiftly to ensure compliance and reduce risk.
"Unless the recipient has given consent -- or opted-in -- to receive the communication, and the message complies with very specific formalities, businesses are going to find it much more difficult to send electronic messages with commercial content," McIsaac said.
"This new legislation will impact any American business that communicates with Canadian customers or transmits data through Canadian servers," she continued. For most organizations, the key part of the act is the new rules of consent around almost every commercial e-mail, text or social media message a business sends."
In many countries, including the United States, recipients are offered the option to "opt-out" once an e-mail message is received. When e-mailing Canadian customers, businesses now will be required to obtain recipient consent prior to sending the message. What may prove challenging for many businesses is the need to obtain consent without the ability to send a message requesting consent, McIsaac emphasized.
To reduce risk once the act comes into place, BLG recommends that businesses begin preparations now, and offers the following tips:
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-"AMF" Complaints Filing aka "Canada's SEC - Authority Markets Financials"
http://www.lautorite.qc.ca/en/file-complaint-conso.html or call Toll-free: 1-877-525-0337 or by email information@lautorite.qc.ca
-"FTC" Federal Trade Commission You may file an online complaint at http://www.donotcall.gov or call: Phone: (888) 382-1222 (toll-free)
-"ORSA" Options Regulatory Surveillance Authority. http://www.cboe.com/AboutCboe/legal/departments/orsareg.aspx
-"F.B.I" "The Federal Bureau of Investigation" http://www.fbi.gov/scams-safety/fraud/internet_fraud
http://www.justice.gc.ca/ (Canada's Justice DPT)
http://www.justice.gov/ (U.S.A Justice DPT)
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