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Re: Traderfan post# 10066

Saturday, 03/21/2015 2:22:35 PM

Saturday, March 21, 2015 2:22:35 PM

Post# of 10804
Traderfan...AHAG, suspension/revocation possibilities.....

Quote:
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The concern with ahag is possible SEC suspension. If I recall correctly even 15-12g filers have been caught in the net these past few years
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AHAG, looks like there is a seller here today. Or better said he was here. Any updates on this one?



The risk in owning 15-12G filing shells has dramatically increased ever since the SEC started its "pre-emptive strike" policy/program on dormant stocks and/or deliquent SEC-filers around the year 2012.

I owned shares of CFON back then, which was among the first of the 15-12G filers that got suspended/revoked. CFON was an extremely attractive shell (about 10M shares outstanding, no debt, my cost basis was .01/share and the shell had net cash of .0175/share on the books)......

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76584144

From a retail investor standpoint, the decision whether to remain invested in these types of stocks is pretty difficult because some of these stocks will likely be complete losses and others might provide opportunities for huge gains. In the last few months or so, there have been a few deliquent, dormant, or semi-dormant shells I have decided not to purchase because it appeared they were probably well on their way to suspension/revocation. I ended up guessing wrong, the stocks entered in reverse mergers, and I missed out on what would have been extremely nice profits.

I've maintained my positions in what I consider to be some of the more attractive 15-12G shells out there (AHAG and CCMS, for example), and currently plan to hold to the bitter/positive end. While the idea of losing the money I have invested in these shells is not a pleasant thought, the possibility of missing out on a potential monster gain probably would make me more sick to my stomach.

What is happening to these dormant/deliquent stocks is something that should make most OTC investors a little bit uncomfortable/uneasy because this has potential implications/consequences that could impact other companies trading on the OTC. If the SEC decides to start expanding its pre-emptive strike program to every OTC stock (rather than just those dormant/deliquent companies that it currently targets), then quality/active 15-12G filing companies (like IVRO, KLYG, and TCOR, for example) could find themselves facing possible suspension/revocation if they do not fully comply with the SEC's requests/demands.
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