Replies to post #52416 on First American Scientific Corp. (fka FASC)

[TRCPA]

Techisbest.......microcaps took a bite out of the big boys in the late 90's as the internet era was summoned.

The 2000's brought forth a number of changes that hurt the microcaps and protected the big boys, starting with the elimination of market buy orders for micros........and culminating about 8 years later with "too big to fail" safety nets for the biggest of the bigs. Some SEC rules changes further hurt the microcaps.

Those changes slowly but surely reduced....and then essentially eliminated......the abilities of microcaps to raise money through debt and equity financing. They were forced to either become quickly profitable or start dying.

FASC is one of the few left standing.....albeit now as a currently private entity....that can be profitable on its own, without the strict need to raise money through debt or equity financing.

[sunspotter]

"The whole stock market needs a major overhaul. It is legalized thievery."

I think that's unduly harsh, and I would draw a clear distinction between the exchanges such as NYSE and NASDAQ, and the non-exchange venues such as the OTC.

I agree it would be difficult to argue that the non-SEC reporting sector of the OTC market serves any purpose (except for the trading of foreign blue chips without ADRs) and it should be closed down forthwith to prevent the destruction of capital and the diversion of money to the criminals behind the scams that operate there.

OTC companies that report to the SEC such as FASC used to do are a different story, although they need to be more vigorously policed by SEC.

We've seen companies that report to SEC run scams on the OTC because they hire complicit auditors to verify false filings, and because they issue false PRs between official filings.

Another way apparently respectable companies also game the SEC is by the use of non-disclosed IRPs to spread false propaganda and other manipulative rumors on social media.

Regrettably while a couple of FASC's IRPs did make the appropriate disclosures, FASC, Cal particularly, hired a number of IRPs who worked the social media without declaring their payment or employment as required by law. This created a false market and a bubble in the shares which in turn created a raft of shareholders with huge losses which they could never contemplate crystallizing by selling their shares.

And when FASC stopped filing their legally required SEC reports, they should have been suspended much quicker - say after three months - to prevent further losses among new and existing victims. That's something the SEC could do much better and efficiently.

So if the SEC could tackle the three issues of

1)corrupt service providers collaborating with equally corrupt managements to issue false audits etc,

2)undisclosed IRPs and

3)faster suspension of delinquent filers

and if the dark portion of the OTC market was just abolished, then the penny stock markets would be a cleaner place and there would be fewer fiascos such as FASC.

At least two of those three points above and probably three out of three - if you include the halloysite clay propaganda issued by NNAN and ALMI with the apparent collusion of FASC's management - were factors in the rise and fall of FASC.

[sambeaux]

Techy, Your casino analogy is perfect.
But living out here in Reno I see all
these lavish casinos.. and wonder.
Could there be some "rigging" going on
to pay for them.
Ya think.