Sulja Bros. Building Supplies, Ltd (SLJB)

[Stock Lobster]

Spoke to an Ameritrade supervisor, who said two things are going on: 1) a new regulation (2 weeks old) that imposes a 3 day settlement requirement for funds on any pink or otcbb purchased before a name change or corporate action.

For those of us who bought last week, we are being held to the 3 day waiting period for funds to clear, regardless of our margin account privileges under normal circumstances. This is new.

2) In addition, because it is a pink/otcbb, ameritrade will not give us the benefit of the doubt that the shares will be received, and so, will not post them to our account as holding those new SLJB shares until a business day after they are received.

All holders are subject to the second constraint.

However, last week's buyers are being stymied by the first constraint as well.

Bottom line is, you can sell if you get an exception from a supervisor, and speak directly to an account representative at the Trading Resource Desk. However, those funds will not be available to you until the shares are received and the original funds settled. You would not be able to repurchase your position, for example, if you realized you had made a mistake.

Therefore, I think it is safer to hold these shares for the moment until the paperwork is received and you could daytrade them if you wished.

Think I'm holding,though, this is too interesting to watch!