AATC - jtomm, I agree that for an investor with a long-term outlook, the listing probably isn't going to matter that much in the end. A business is worth what a business is worth to another company looking to acquire it. The cost savings and the time saved by management not having to deal with all the regulatory stuff should add value to the company.
In the shorter term, though, I really believe there is a stigma attached with trading on the otc market versus having a Nasdaq or NYSE listing. I think overall, otc stocks will continue to receive discounted valuations relative to listed stocks. That's the reason why you see these crazy multi-hundred percent premiums paid by acquirers of otc stocks sometimes.
Plus you usually have lower volume and wider spreads. Many brokers also charge commissions on otc trades whereas the listed trades are free. Unfortunately just more reasons for investors to stay away.
The SEC really made a mess of things when they tried to save everyone and instituted this expert market for many otc stocks that weren't current with their disclosures. After seeing many otc stock prices get crushed because of this, many investors are even more wary of purchasing shares in otc companies. I also think a lot of investors are confused with the new and old otc market designations. Let's see you have the OTCQX, expert market, OTCBB, grey market, OTCQB, and pink sheets! Are they trying to make it confusing?
I think looking at it from a Warren Buffett point of view, the listing probably isn't going to matter much in the long run. In the short term, though, I'm wary.
I have seen lots of $1 stocks with strong earnings and solid balance sheets triple, quadruple and more, but I have yet to see one go below zero.
