Always surprising to me how people buy the hell out of OTC tickers with tons of toxic convertible debt, with all the usual dilution MM's ....MAXM, ALPS, VERT, PUMA, VNDM, CFGN, etc, etc on them.....but new issue, which rarely have any dilutive MM's, or CD's for that matter, never get any volume at all.
But then again, those MM's provide pumpers and pump groups the opportunity to really load up.....and if there is one thing I have learned in my years of trading OTC tickers, I started in '96, one thing I can say with almost 100% certainty......NO PUMPERS = NO VOLUME.
And when I say 'pumpers' to me it's not necessarily a negative thing, I'm saying people that generate awareness for OTC tickers, whether paid or just normal traders.
This is why new issue will never be viable investments, because the vast majority of people that do buy new issue, do nothing to generate awareness, it's always been that way though. They don't do any DD, no discussions on the boards, no tweets, no telling any groups or friends....they think that the stocks will just magically go up....and thats not the case....especially for brand new tickers.
It use to be the companies could bring in buyers, and occasionally they still can....but not very often. Most of the times they can't afford a decent IR firm. Small paid promotions, get flagged at OTCM, and bashed by traders, and are mostly ineffective anyway....and high dollar paid promotions get suspended in a heartbeat.
Frustrating, but it's just the way it is now. Investing in new issue is kind of dead money now, unless maybe if they are paper thin and can move a couple hundred or a couple thousand shares in volume.
Just a rant of the day...lol.
