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Re: Value_Investor post# 8050

Sunday, 08/05/2012 2:53:43 PM

Sunday, August 05, 2012 2:53:43 PM

Post# of 8313
Let me clear up a few things for you. Firstly, a large spread in the otc market of an equity usually reflects a lack of trading interest. Secondly, the only price you need be concerned about is the bid. If one is looking looking to buy some shares of an inactively traded issue with a big spread between the bid and ask, I suggest that a limit order is placed. The otc market is an negociated one, and a market maker may just decide to lower his ask if he has some cheap stock available. Lastly, I would exercise extreme caution before buying shares of a penny Chinese security. Its hard enough to keep up with news development with low priced American companies, let alone firms domiciled thousands of miles away. GLTU.

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