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Difference between pinksheets and OTCBB
Anyone who deals in the less well known and capitalized stock names has, by definition, a more robust risk tolerance than your standard ‘widows and orphans” type investor. For that reason, these hearty high risk/reward types tend to gravitate toward the more speculative stocks. And their hosting Exchanges…
There seems to be some confusion among readers regarding where Bulletin Board (OTCBB) and Pink Sheet (PS) stocks rank in the investment food chain. There are similarities, but also some significant differences. Both take listings by Market Maker subscription (instead of company application as on the big Exchanges) and are competitive quotation driven markets. While both markets are speculative, how a company gets to and stays on the OTCBB or the Pinks provides both the differentiation and ultimately the varying degrees of investment risk.
While OTCBB stocks are regulated and are required to provide financial information by remaining current in their filings with the SEC, Pink Sheet stocks don’t and can be a bit of a wild-west show. The Pink Sheets are basically just a competitive customer/market maker quotation service provided over the Internet and bereft of any reporting requirements. Any filing of financial documents is strictly voluntary. Accomplishing anything approaching due diligence by investors within that realm can be like riding a three legged horse. Pink Sheet investors have to virtually depend solely on the company for information, which could carry an unhealthy amount of bias.
There is one trend, however, that is benefiting and growing listings on the Pink Sheets. Given the prohibitive cost and regulation associated with an ongoing listing on a larger Exchange—Sarbanes Oxley, etc.—more companies have opted to go to the more welcoming Pink Sheets in their formative stages. With $100’s of thousands on the line to comply with an ever growing list of regulatory requirements, the cache of a legitimate Exchange listing may be just to onerous to a smaller company.
The broad difference between the two markets is categorized thus: The OTC Bulletin Board® (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. The Pink Sheets are not owned, operated or regulated by The NASDAQ Stock Market, Inc. or indeed any Exchange/regulatory entity. Pink Sheets LLC is a privately owned New York-based company delivering an Electronic Quotation Service, which only provides an Internet-based, real-time quotation service for OTC equities and bonds.
Neither Exchange has listing requirements coming remotely close to their larger brethren. They are, indeed, subscription services as opposed to an issuer-listed exchange such as the NASDAQ, AMEX or NYSE. Basically, if you have the fee and a broker sponsor, you can list on the OTCBB or the Pinks.
The main strength to OTCBB over the Pinks is that if you see an ongoing quotation showing on an OTCBB stock, that means that it is current in its regulatory filings—a necessary component to remaining listed. If the company is late filing, an ‘E’ is attached to the quote symbol until the situation is rectified. If the company fails to file within the 30-60 day grace period, the security will be removed.
And likely moved, unceremoniously, to the unregulated, non-reporting Pink Sheets. Starting to make sense?
Quotation of OTC securities on the Pink Sheets is subject to Rule 15c2-11. The issuer of the security may not apply to list or quote it on the Pink Sheets. It is a market maker that determines whether to quote an OTC security and initiates quotation by submitting a Form 211 to the NASD. Since there are no reporting requirements, it is actually possible for a market maker to quote securities in the Pink Sheets without the knowledge or permission of the issuer of the securities.
While Rule 15c2-11 is also necessary for the OTCBB folks, ongoing SEC filings are required. It’s pretty safe to assume that because of this reporting that the OTCBB companies have a more vested interest in the trading of their stocks as well as keeping shareholders informed.
While the Pink Sheets has been categorized as the ugly stepsister of the market, the OTCBB is more like a second cousin of the NASDAQ. The main differences between the OTCBB and the NASDAQ is that the former:
* does not impose listing standards;
* does not provide automated trade executions;
* does not maintain relationships with quoted issuers; and
* does not have the same obligations for Market Makers.
The OTCBB provides quotes on over 3300 securities through approximately 250 Market Makers. The NASDAQ has no dealings with OTCBB issuers; its role is to establish a fair and orderly market for its customers. Any beefs one may have with an OTCBB company goes through the SEC. The NASD deals with broker/trader conduct.
The Pink Sheets, originally a dealer to dealer telephone market, derived its name from the color of the quotation sheet published and circulated daily for these mostly microcap, formative securities. Even I remember those…
Up until a few years ago, with the advent of the Internet, there’s a good chance most investors had never heard or dealt in the Pink Sheet world. Since then, its visibility has improved to a point that issues and volumes have increased exponentially. While this may have added to the ‘legitimacy’ of the Pink Sheets, investors need to be very cautious; mainly due to the lack of regulatory filing requirements as well as a pretty much complete dearth of ongoing news and objective information.
Caveat Emptor. Truly.
Isn't the so called recent news just a way to say they just carried out 1 for 3 reverse split. Sorry i don't get what all the excitement is about. Looks like they did a 10 to 1 forward split to merge with WRII for some reason then did a 3 to 1 reverse split after the merger.
If i'am wrong please enlighten me. The positive is that the market cap is still less then the worth of real estate they currently hold.
What is the rate for square footage in Neveda? Is it worth 1200 a sq foot.
What sort of revenues and profits do they foresee going forward?
Thanks for the update Righty. I wouldn't encourage more then one or two people calling. This might keep him in an honest mood. Just him talking is a relief. I still believe Larry has the best intentions and i hope for all our stakes he succeeds. I also believe the SEC is giving him the run around and a move to Frankfurt for EQBM is the only way forward. I would like to see a merger between EQBM and SOMA at some point
Of course it all hinges on the Dalian tailings project. In the meantime gold continues to rise and this could entail all parties involved to get their acts together.
100 to 1 R/S split,what are these guys smoking. Soon as the reverse split takes place this will drop another 50% imho. Watch them announce an increase of A/S at the same time. How are they going to finance all their other deals if they don't.
Management should forget about any split and continue to buy back shares and retire them reducing the A/S and O/S as they go. Its the only way to get any semblance of credibility back with shareholders.
They are not in any position to grow thru aquisitions other then maybe one and should concentrate on production. These guys seem to think they can get something for nothing. PRODUCTION PRODUCTION PRODUCTION is what shareholders are looking for.
Who is advising these guys. $10 million would be enough to retire at least 300 million shares.
Eik,i hope you can get them to listen to you.
The key to this one is definitely the float. If we assume the average most of us are in at is around 4 cents thats only $500000 for the float.
They just paid out $100000 for the pinky shell. The shareholders are looking for more then 4 cents a share for their company. With some news regarding revenues and profits this will go up from here.
Its going to get real interesting soon!!!!
The following is a post by Niemand,worth repeating:-
I received a return call on Friday from someone deeply involved with GSI. I had left a message for him more than a week prior. He asked me to not reveal his name, so I won't. And please don't ask (PM or not). He would not comment on specifics of GSI except to refer me to Gunther Slaton. So I asked him about the current credit crunch problems due to the sub-prime mortgage debacle and whether it is adversely affecting GSI. He replied, "absolutely not." He said that they are not related at all.
I asked him whether the net profit margin of 11.5% (see post #293 by joenatural) was accurate for the business that GSI is in. He replied that we should distinguish between the factoring industry (which I never once mentioned in our conversation) and the securitization industry. He said that the 11.5% is about right for the factoring industry. For the securitization industry, it's much higher. He added that if the business is done well, it can be well over 40% net profit margin.
Posted by: joenatural
In reply to: xbootienow who wrote msg# 284
Date:7/6/2007 8:54:36 AM
Post #293 of 2075
About 17.9 ..............
Industry Statistics under factoring category
Market Capitalization: 116B
Price / Earnings: 17.9
Price / Book: 2.7
Net Profit Margin (mrq): 11.5%
Price To Free Cash Flow (mrq): -2315.1
Return on Equity: 9.1%
Total Debt / Equity: 0.0
Dividend Yield: 3.6%
A 100 to 1 reverse split sounds bogus to me, Hey what do i know.
Looks like the rumour of a reverse split is about to come true. I feel for you guys. I'am glad i got out while it was still a rumour. Friggin Russians....
Did stan lee patent all his work under his name.
Application priority data:
Application No. Country Date
10/938,663 United States Sep. 13, 2004
Application Priority DataBack to list
Canada is a signatory to international treaties and conventions which grant similar rights throughout many countries. An applicant may use the filing date of a previously filed application as the effective filing date of subject matter in a later filed Canadian application provided that:
1. the previously filed application was filed in Canada or in a country recognized by Canada through treaty or convention for the purpose of priority claims;
2. the previously filed application contains subject matter found in the later filed application; and
3. the later filed application is filed within 12 months of the previously filed application.
This field gives the priority application(s) related to the Canadian application. The order of appearance is: priority number, priority country and priority date.
A patent document may have multiple priorities. Only the earliest priority is searchable but all priorities will be displayed.
No it doesn't in the good ole USA.
He may be a founder of Biocognisafe but as far as the US is concerned he is the owner of the Patent and its up to him who he licence it too. The patent goes with the inventor.
doog,i'am not a shareholder but i know a few who are. Hate to see people get taken advantage of before the full facts are out. It looks like MCCY has a good case and Biocognisafe are being predatory. It all depends on what the inventor has to say. As far as the US is concerned its up to him who he wants to license his invention too.
The original patent was first issued in the US before canada. The date of this patent was sept 13 2004 in the US. The Canadian patent was filed on September 2005.
Biocognisafe doesn't own the Patent in the US the inventor does.
martingale,to me it seems like MCCY has every right to this technology in the US if the inventor deems to let them use it.
It looks like Biocognisafe filed a patent on behalf of the inventor in canada.
Crash course on patents: Who can get a patent
Normally, a person who made an invention is entitled to a patent (assuming the invention itself qualifies, of course). There are several special circumstances however. For example, if the inventor works for a company, it may be the company is entitled instead. Or perhaps the inventor has agreed in a contract to assign his rights to someone else.
In most countries, if two people independently make the same invention, the first one to file a patent application gets the patent. The USA has a "first-to-invent" system, in which the first inventor gets the patent even if he filed an application later. It is quite difficult to prove earlier inventorship though.
When someone makes an invention, and does so as an employee of a company, usually the company owns the right to apply for a patent. The exception once again is the United States, where only natural persons may apply for a patent. In the USA, the employee will typically have a clause in his employment contract stating that he assigns all his patent rights to the company. The filing is then done on behalf of the employee, but the rights immediately go to the company.
Most countries do require that the employee's activities are in some way related to the invention. If the janitor invents a new medicine, his company will not automatically own the patent rights to that medicine. However, if a researcher in a medical company invents the same medicine, his company does.
The company may be required to pay the inventor a compensation, unless his salary is deemed adequate for an inventor.
In Germany, if a company decides it does not want to apply for a patent on
How can two companies hold the same patent? Who was the inventor working for when he filed the patent? It may be for the courts to work out but i would have thought investors in MCCY would want to get to the bottom of this to continue to hold.
Wow what a massacre. Does anybody know who holds the patents to the technology. Might be worth checking who holds what patents. However Biocognisafe saying they hold the whole technology sounds overstated. Check with the patent office is what i would advise.
What was the largest previous receivables project that GSI was involved with before this current one. Anybody know? Who was it with? What was GSI's cut?
Again i agree with you double. We may have to be wait a little longer however. Like you i want to see some deals being done. As for now we see a potentially great business plan, now we need to see some type of clear cut revenue and profit model happening.
How long does it take to do due diligence on the receivables of a hospital any way? What are the criteria for approving a deal and what are the time frames involved?
Thanks penny.
I agree,i was thinking the same. There is no reason whatsoever they cannot give out the names of hospitals they have deals with. It then begs the question,have they got any deals closed yet?
Where's the beef?
Of course they might be holding back until it prints.
Good question doubleeagle,something Gunter should be asked. Have they actually closed a deal yet or are they all still at the negotiation stage. Time to ask questions i think. Lets see what we really have here.
Sorry may be a false alarm. As you say may need a PR for symbol change before printing.
Its looks like GSI is going to print or already has.
I think your wrong this was a timely PR. It lets all his shareholders whats happening. Well done GSI. I'am sure there is more news in the near future. This is just what the doctor ordered. I'am smiling again.
Nice to know management is listening to the concerns of shareholders.
stoc,that may very well be the case. Lets hope it was all done for the right reasons. All i want to see is the stock price rise,hate to see the company shoot itself in the foot because they don't understand that perception is a huge tangible on the pinks.
The 150 million extra authorized shares are not restricted they are in the companies treasury to do as they please. After issuance they could be deemed restricted,even restricted become unrestricted at some point. Greed is greed i have seen this with even the most reputable companies. The extra authorized shares are virtually a blank check.
The only problem at the moment is that MM's out there see the authorized has increased and they manipulate the market accordingly. Should it happan,No,but you try telling that to the Market Makers.
Why couldn't the company have just incorporated with the initial 100 million authorized and increased at a point in time when they needed them.
I continue to hold but i can't say i'am happy about it.
This post is not directed at you Xbootie,just voicing my concerns aloud.
You may be right but i would have liked to have seen a vote on it. The temptation for dilution is out there now.
My only question about the PR is why they did not reduce the amount of Authorized shares. Having another 150 million shares available in the treasury seems a bit excessive at this time in their development.
I am personally not very pleased with this outcome. Gunther didn't really give us an explanation about the need for it. I think we were thrown a bit of a curve ball here.
Being a pink stock and doing this does not sit well with some investors. The ugly head of dilution could be rearing its head.
I will probably get my head chewed off for saying this.
I would think the registration tells us is that that the Nevada shell of 250 million shares was bought out fully by GSI. NOW THE REVERSE MERGER CAN TAKE PLACE. At this time GSI can limit the A/S to the previous 100 million and limit the float also to its previous level. A name change can also take place at this time. The next action that would take place is putting together the audited financials to get listed on the OTCBB.
Gunthers words:-
GSI will not effect a reverse split, all shareholders will retain the shares they own, no change is planned that will affect any shareholders position, pre or post merger.
GSI will not change the authorized shares, said authorized shares to remain at 100 million.
GSI is expediting the move to Nevada domicile and printing shell, and will announce further details shortly.
We don't need an E at the end might confuse people thinking it/s late on a filing or something.
Interesting the way they are smashing this stock. Seems overdone.
Rumour has it that the Chinese are liquidating US Treasuries and buying Gold.
With the way gold is reacting today SOMA has got to worth something if the Dalian deal really did get closed. I still believe Larry will come thru if Dalian is part of SOMA. I would love to know whats happaning if your listening Larry. Come on throw us a bone.
Looks like news is around the corner.
Go Public Direct Without a Reverse Merger with a Public Shell
You can Go Public Direct and eliminate the cost and potential headaches of a shell, potentially saving you hundreds of thousands of dollars in cash and equity give up.
HOW? WITH THESE TWO STEPS:
Step 1: Become an SEC reporting issuer by filing with the SEC a Form SB-2 registering for sale stock you have already sold to your shareholders, generally in a private placement; or, in the alternative, registering your company's treasury stock for sale.
Step 2: Have a correct shareholder base with at least approximately 400,000 shares or more sold for real value [$.10 per share is a recognized minimum, can it can be more] - cash or services or both; the shares being equally distributed among approximately 50 or more non-insider shareholders.
DOES THIS WORK? YOU BET IT DOES!
One of our filings, City Language Services, Inc., cleared the SEC in less that two weeks. And another, our SEC filing for Driver Passport [DPSS.OB], which cleared the SEC in 21 days. Now of course in the case of City Language Services and Driver Passport, the filings received a "no review" from the SEC which resulted in this timely clearance. All of our SEC filings for other clients were reviewed and took longer to clear. And not all results are provided, the results are not necessarily representative of results obtained by the lawyer, and a prospective client's individual facts and circumstances may differ from the matter in with the results are provided. We'll gladly furnish you with information about our Track Record at your request.