Given that I was once fleeced by the pink sheet dream, I can provide a bit of insight.
What the insiders and frontloaders NEVER reveal to the rubes/marks/morons is that not reporting to the SEC is a huge red flag, probably the largest of them all. Some people will raise the issue but they are immediately drowned out by NSS conspiracy theories, wild screeds about NITE and the evil games MMs play, the threat of being labeled a basher, the "no one bashes a bad stock" mantra, SEC and hedge fund collaboration...need I go on?
Once the mark accepts that there are "much more intelligent people" on the iHub board that have been doing this for years, they cling to the dream of untold wealth, the mythical short squeeze, the billions of gold in the ground, whales who will come in and buy, hedge funds going bankrupt...need I go on?
The mark then internalizes all the above reasons for staying in the stock and begins to spout them on the board. The job of the insider is done; they leave it to the marks to do their dirty work while they concentrate on selling as much as possible. Each rise in SP is obvious proof of the mark's decision and is greeted with more pumping to induce others to buy. Each drop in price is greeted as a "time to average down". I believe that deep down inside, the marks begin to understand that they are being scammed but their desire to fit in and not get thrown out of the club suppresses their gut feelings.
As the price begins to decline, some (like myself) begin to listen to the "evil bashers" and do their own research . As you can imagine, a little digging is all it takes to confirm the "gut feeling". Others prefer to stay in the club and continue supressing what they know is the truth. Those who choose to be vocal about the fraud, scams and outright theft in the pink sheet market are quickly excommunicated from the club and called all sorts of names. Rest assured, there are many more people who either stay in and continue to strive for te elusive "multi-bagger" or lose it all and give up. I would venture to say that very few stick around after admitting they were scammed. It is tough to admit when you are wrong and even tougher to take the abuse from those who used to call you a friend. I stick around because I think I would be doing people a disservice if I didn't. The average person who stumbles into the pink sheet cesspool deserves the right to know what they are getting into. I refuse to sit idly by and watch others get scammed in the same way I did.
I write all this from personal experience. The moment I started questioning MDMN, I was banned from every forum (excluding iHub) that discussed the stock. Bottom line, the questions I was asking were correct and over a year later, I was proven right. That unassailable fact is completely lost on the MDMN pumpers, supporters and insiders. I'm a basher...if that means I help people not get scammed by obvious fraud, then I wear that label like a badge of honor.
Finally, the oft used excuse of "don't buy into a pink sheet stock if you can't take/appreciate the risk/reward" sickens me. We know pink sheets are ultra-high risk but that does not allow those involved/invested in them to slough off the fraud as "risk". Outright fraud and theft is not risk, it is crime that should not be allowed to occur. Insiders who lie to pump up their stock should be prosecuted to the fullest extent of the law as should those who enable them. I am sick of hearing how operating in an area filled with fraud is simple "risk" and if you can't take it, then you shouldn't play. I suppose by that logic, we should all become drug dealers but hey, if you can't appreciate the risk, maybe being a drug dealer isn't for you.
PINK SHEET fraud is wrong - the SEC should shut down the entire market. Give companies 6 months to either file the required paperwork or the SEC suspends trading in your stock until you can. F*** the "shoestring" budgets and "poor broke management teams just trying to get a fledgling business off the ground"; enough is enough and it is high time the SEC acted!
/rant off
