Shell Stocks; Reverse Mergers; Acquisitions; Zombies; Greys; & All "Other" Plays

[Potse]

SEC's suspension policy does a disservice to investors.....

The current approach the SEC takes toward suspension/revocation of delinquent or dark tickers really does a disservice to the average retail investor. There is simply too much inconsistency and not enough adequate public disclosure of its policy and actions. It needs an overhaul.

There really is no excuse why the SEC can not conduct its suspension/revocation process completely in the open. Every investor should be given the opportunity (in real time) to know when the SEC has contacted a potential suspension/revocation target, exactly what the SEC is requesting/demanding of the company, any exact timelines for response/punishment the SEC has made, and any response the SEC has received from the company.

By not making full disclosure of all of this, the SEC potentially allows insiders/friends/associates of the company an opportunity to make a buy/sell decision while the average retail investor sits there in the dark unaware of what is going on behind the scenes. For an organization that is supposedly looking out for the "little guy", this is an completely unacceptable way to handle the situation.

I made the above post last year (excerpt shown), and it seems as relevant now as it was then. Unfortunately, it doesn't look like the SEC is going to make any change in how it handles its suspension/revocation policy. While some of the SEC's intentions may be admirable, the manner in which it implements this policy needlessly harms many investors in this section of the market.

I like to pre-position myself in shells or dark companies prior to any corporate activity showing up, but this SEC policy certainly increases the risk level in these types of investments and makes it more and more difficult to take anything more than just token positions in many of these stocks.

A lot of these higher quality dark shells (like AHAG, PURY, ZHDM, etc) hold the potential for some amazing returns, but almost everyone of them could be immediately suspended/revoked. It pretty much depends on the whims of the SEC.