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Stock Lobster

12/02/06 5:55 PM

#24 RE: Siruis #23

Just an fyi:

Please have very little illusions about pinksheet companies. They are to be traded only, not held for any length of time. And to be correct, the market makers are usually working on behalf of someone. If you see VERT, VFIN or CLYP on the ask, that is probably the company itself diluting shareholder value. The market maker is merely the agent placing the order.

There are certainly occasions where market makers have manipulated trading, but the worst that penny investors repeatedly face is inflicted on them by either the pipe financers who funded their company, the same funds shorting the company stock, or the company itself killing the PPS by massive dilution.

Yes, there are a handful of legitimate startups traded in the pennies, but they are hard to find, and often they have very little volume as they are not being heavily promoted. This may not be attractive to the average penny player looking for high returns in a short time frame.

You might want to read this post I wrote regarding the pinksheet market. It has been verified by someone who is a pipe financer, as well as a number of veteran traders on this board.

http://www.investorshub.com/boards/read_msg.asp?Message_id=15162657&txt2find=repost