SEC certainly doesnt have resources to go after every company releasing such press releases immediatey, and must prioritize their efforts. Having said that quietly FNRA can issue a "blue sheet" requesting clarification from the company Just looking at MISM website and personnel , at a glance pretty obvious they really dont have experience in this sector.
Anyway the reality is SEC has more tools to deal with reporting companies, not non reporting companies ! The better solution woudl be for invsors to start campiagn with Pink Sheets to stop quoting companies unless
- They have some sort of independent financial statements
- Transfer agents have to report whenever a company issues over 10% of their shares, or make a company requirement to do so within 5 days
- Have brokerage industry, pink sheets, etc assign aprt of commission to a fund to periodically review pink sheet filings.
These wouldnt be onerous resrictions but would help.
As far as investors, what I find curious is so many comments about "scams" but they keep buying these sort of stocks. If I buy a penny stock I fully understand the risk. Investors like to buy buy and sell low, when price is going up and company issuing inane press releases people accept- when price goes down, then they apply scrutiny.Or start up with urban legends about short selling.
Majority of pink sheet companies probably not scams but due to the increasing difficulty imposed by regulations and brokerage firms, companies are being pushed more and more into weird ways to finance themselves. Try buying resircted stock then after 12 months placing in a brokerage account if stock trades under $05. So Pink Sheet companies being driven the gutter of financing via "IR" companies etc who just want a quick buck.
This companies MISM in claiming billions of $ in value will attract furtehr issues I think.
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