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bUrRpPPP!

01/11/07 6:57 AM

#1577 RE: charhorse #1576

Char, higher exchanges are more strict in regards to filings and over all transparency....example; CFRI trades on the pinks so they do not need to file "audited" financials...does not mean the company is good/bad...but the pinks is a safe haven for many shady companies.....but many "good" companies trade on the pinks for life...
Pink sheet stocks trade 2 ways...solicited and unsolicited....the latter being the most volatile....

CFRI is an unsolicited pink sheet stock..thus the market makers match buys with sells thus increases the volatility.....MM's dont really "create" a market on unsolicited stocks and hold little inventory....so lets say if shareholder xyz decides to sell 100,000 of cfri with a "market" sell that sell will not go thru in one chunk..it will be broken up as buys orders are matched on the way down till the sell is complete.....thus giving the impression that many people are selling and creates a little "panic"....point is that we will be hearing about CFRI move to a higher exchange within the next 2 weeks and that tends to be viewed as positive news....patience is key now....g/l