OTC IPOs, Mergers & Other Material Events

[adijas]

I would say half true, lol. I mean SSGI just did where you were talking about with a 1:100 RS, but SMGI announced a very clean RM yesterday. And a lot of (Asian) tickers do a change in control by buying shares from old management and the SS stays the same. IPO's can work out very nicely, I agree, but also some don't. GHHC started around 1.00 and only went down after that (now recovered a bit). And sometimes you buy, but it turned out you are about the only one becuase the stock hardly ever trades after that.

The thing is, there are no guarantees in OTC. Even the best DD isn't a guarantee. We all know the feeling that if you invest too much, the stock doesn't work out as expected, while it works out better when you invest less. I think the reason is that you are tempted to invest more if you have done a lot of DD, while you buy less if you invest on intuition. Maybe we should learn to turn that around and accept that in OTC intuition (based on experience) is more profitable than ratio.