Replies to post #58462 on Pilgrim Petroleum Corp. (PGPM)

[lucky, mydog]

Don't insiders receive paperwork and requests for information way before the suspension actually takes place?

the investigation could have started any time. there is no way to know. the sec never gives advance warning of a suspension. since pgpm is a non filer, there would be no reason for the sec to ask for more information because there were no filings to respond to.

[janice shell]

Don't insiders receive paperwork and requests for information way before the suspension actually takes place?

Most companies suspended for delinquent filings are sent a delinquency letter in advance. The SEC's approach to that seems to be haphazard; sometimes companies that don't respond to those letters aren't suspended for a couple of years, while the hammer comes down on others within six months.

But issuers like PGPM that are suspended for cause usually don't get any advance warning. That, as has been suggested, is because the SEC doesn't want to see insiders dump all their stock. They may get a call from FINRA's fraud investigators, but I suspect they don't associate that with major trouble on the way.

But the SEC doesn't just wake up one morning and decide to suspend a stock. An attorney conducts an investigation, and then refers the matter up the ladder. The final decision on whether to suspend or not is made by the Commission. The process usually seems to take a minimum of about three weeks. It may mover more quickly if a well-known promotional group is involved, or if they perceive some kind of public health threat.

Back in the late 90s there was a scam company that claimed it had a cure for HIV. AIDS activists and patients got excited, which brought more publicity to the company and the stock. The SEC came down on them like a ton of bricks only days later. But PGPM isn't that kind of company, so probably the SEC's been interested for at least a month, perhaps longer.