Filing delinquency...reply to private message.....
To the person who sent me a private message regarding VODG's SEC filing delinquency.....
Until VODG actually becomes current on its SEC filings, I think it is only prudent to be at least somewhat concerned about the potential for suspension/revocation of the stock. My guess is that VODG will be able to avoid the SEC taking action on the stock, but that is purely a guess on my part.
Over the last few years the SEC seems to have become increasingly erratic/inconsistent in its approach to handling filing delinquency situations, so anytime you have a stock fall into a delinquent status for an extended period of time (like VODG) it is wise to be somewhat cautious.
That inconsistency by the SEC has made it much more difficult for retail investors in shells and many active/operating small cap companies. There are a number of what I would consider to be extremely attractive shells or operating companies out there, but the SEC's "preemptive strike" policy it enacted a few years ago and its inconsistent/random enforcement of filing deliquencies increases the risk level in these investments.
A few years ago the SEC revoked a perfectly fine 15-12G shell, forcing the attorney who controlled the shell to liquidate the shell and distribute the cash to the shareholders. Meanwhile the SEC allows another shell to continue trading (even though it is now about 24 years delinquent on its SEC filings). I know of one shell a few years ago that was suspended/revoked even though the investment firm that controlled the shell was in fact getting the filings updated. So the firm lost all the money it spent on acquiring the shell, plus any money it spent on the filings. That is the type of inconsistency that has a lot of investors increasingly frustrated.
I think most investors would be served better if the SEC practiced what it preaches: full disclosure. I don't think it is too much to ask that the SEC provide the public with timely information on any contact/demands it has made with any companies it may be targetting for suspension/revocation. It would be incredibly helpful (and potentially very profitable) if you knew whether or not a specific delinquent company or shell was in any significant or imminent danger from the SEC. For example, the delinquent biotech/pharma VPRO had a monster move from its low in the last year or so for those investors who correctly guessed/gambled that the SEC would not suspend/revoke the stock in the near term.
Allowing the average investor an opportunity to make a better buy/sell decision before actually suspending/revoking the stock doesn't seem like an unreasonable request.
