Good evening Stockboy,
As you can imagine, each firm has its own set of rules, policies and procedures that dictate what the firm can, and cannot, do. As a general rule, I think that it is safe to say that very few brokerage houses, if any, will allow their brokers to recommend to their clients that they purchase shares of PRED. Unfortunately, these same brokerage houses will be more than happy to allow you to purchase PRED shares in your brokerage account as long as you sign a waiver wherein you acknowledge that you are purchasing the PRED shares based on your own decision and that the firm did not recommended that you purchase the shares. Also, brokerage houses will charge you a commission to purchase PRED shares because their new "no commission" policy relates only to stocks that are listed on the NASDAQ, the NYSE or the NYSE/AMEX Exchanges. Moreover, due to the new "no OTC company" and "no stock under $5.00 policy", some brokerage houses will not even allow you to purchase OTC traded stocks (no matter what the price is) and some will not allow you to purchase a stock for your account that is under $ 5.00 per share - even if the company is traded on one of the major exchanges (e.g. Bank of America/Merrill Lynch).
The policies of some hedge funds, high new worth individuals and institutional investors allow shares of PRED to be purchased despite the fact that they are traded on the OTC. Unfortunately, I would venture to say that the list is very short.
As a general statement, because PRED is traded on the OTC (and especially as a Pink Sheet company), I do not believe that there is any brokerage house in the United States that will allow any shares of PRED to be transferred into a brokerage account within their firm directly from the transfer agent (even if you agree to provide them with a legal opinion).
Overall, as we all know, PRED shareholders are pretty much screwed as long as PRED continues to trade on the OTC Exchange - and especially the Pink Sheets. I wish that the company would consider buying a company that is already listed on the NASDAQ, the NYSE or the NYSE/AMEX Exchange for a very low price (you could probably get one for about $3 - $5 million) and then doing a reverse merger in which PRED is the surviving company (and then changing the name of the company).
The guys at PRED (and their advisors) are a whole lot smarter than I am about such matters and I am confident that they have some strategy that will eventually get us off of the Pink Sheets and the OTC Exchange. (At least that is my prayer - Ha).
AI
