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Re: PENNIEStoSTACKS post# 13706

Tuesday, 01/03/2006 9:09:48 PM

Tuesday, January 03, 2006 9:09:48 PM

Post# of 315357
Going... I am in conditional agreement if R/S stock moves to AMEX from OTC (Pinks/BB) and company in question has a sound business plan. Case in point: GTE. It gets dicier if these conditions are not met.

There have been academic studies demonstrating the negative aftermath of a R/S. According to this MoneyCentral author, 75% decline post R/S. I've read elsewhere that some 90% of R/S stocks are lower after three years and 60% don't even exist after five years. Aware of the R/S stigmata, many investors and more institutions shun them.


http://moneycentral.msn.com/content/P32972.asp

http://news.com.com/2100-1017_3-248744.html
http://www.businessweek.com/bwdaily/dnflash/jul2002/nf2002071_5023.htm













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