Replies to post #40683 on Woodbrook Group Holdings Inc (WDBG)

[Distantpulse]

Man, I’m trying to find a reason to hold on to my shares. You think it’s best to wait it out for an official PR that states a definitive R/S will happen?

[samsamsamiam]

Truth be told most do not make money investing in OTC stocks:

https://www.sec.gov/dera/staff-papers/white-papers/16dec16_white_outcomes-of-investing-in-otc-stocks.html

Outcomes of Investing in OTC Stocks
Dec. 16, 2016

Joshua T. White
Abstract:
This paper analyzes three aspects of over-the-counter (OTC) stocks: (1) the recent trends in the OTC stock market structure and size; (2) the documented properties of OTC stocks; and (3) the differences in returns based on investor and stock characteristics. Approximately 10,000 OTC stocks were quoted at the end of 2013 through 2015, generating a total trading volume of over $200 billion per year. Dollar volume has grown substantially since 2012 and is now concentrated in the segment of the OTC market with no requirements of registration or reporting to the U.S. Securities and Exchange Commission (SEC). A synthesis of recent academic literature reveals troubling properties of OTC stocks. Academic studies find that OTC stocks tend to be highly illiquid; are frequent targets of alleged market manipulation; generate negative and volatile investment returns on average; and rarely grow into a large company or transition to listing on a stock exchange. Moreover, these properties tend to worsen when the OTC company has fewer disclosure-related eligibility requirements. I examine the relationship between OTC investor demographics and investment outcomes using a proprietary database of transaction-level OTC data with confidential investor information. Analysis of 1.8 million trades by over 200,000 individual investors confirms that the typical OTC investment return is severely negative. Investor outcomes worsen for OTC stocks that experience a promotional campaign or have weaker disclosure-related eligibility requirements. Demographic analysis reveals that older, retired, low-income, and less educated investors experience significantly poorer outcomes in OTC stock markets. Given that retail investors are the predominant owners of OTC stocks, and the documented trend towards less transparent OTC companies, the results of this study have important implications for investor protection.

Downloads

pdf
White_OutcomesOTCinvesting.pdf




take a few minutes and read the report.

[braybrit]

Genuine response!

Deserves a Follow

[DIVEROTC1]

Nice to have someone honest.

(Not sure about the millions of dollars though)

[Alley-oop]

Thanks StockNinja. I bought the shares when it was 0.023 and didn't sell a single share. If I sell those, I may lose a lot but I am not selling.

I got an opportunity twice to average them, but I didn't have money to invest more.

[Lakota-45]

Thanks "Ninja33" - I think most here will agree; Regardless of the DD that has been shared here, every investor is responsible for their own actions!

This may turn out ok for the longs - but - maybe not so much for the smaller investor, like me.

As some of you will remember, I saw the red flags - but - jumped in anyway!

It's been a good lesson learned !