GCL Poly Energy Holdings Ltd (GCPEF)

[Skinny Mulligan]

99% Price Drop! Blame Rule 15c2-11

As of today, my TD, ETrade & Merrill accounts will NOT allow purchase trades for GCPEF. They spit out error messages citing "SEC Rule 15c2-11".

However, my Schwab account let me purchase 10,000 shares for a whopping $6 (including fee). Still down $4K on my existing shares.

After reading rule about Rule 15c2-11 on the SEC site this is what I think is happening:

Brokers must now take steps to verify that the OTC companies exists (among other things) before they are allowed to broker OTC transactions. Either those 3 brokers just have not taken those steps; or maybe because Poly GCL trading is suspended on it's home (Hong Kong) exchange, they've decided that they aren't allowed to trade.

People holding the stock are seeing the new restriction, thinking something is wrong and panic selling.

NOTHING about the company has happened or been revealed about the company in the last week (other than the date announcement of their regular board meeting). This drop is purely artificial.

Now the restricted trading should hurt the value by limiting the pool of buyers. But not nearly this much.