I've been told you're wrong about this by an old fashioned stock broker years ago. He assured me that interested Institutions will buy in at the beginning of a quarter and will be out at the end unless the stock reaches their minimum. As long as they don't hold over the quarter they need not report the specific holdings. All such holding by them over the quarter are just lumped together and shown as a gain, or loss, in the quarter without specifying any of the stocks held during the quarter.
Also, there are Institutions that do have lower than $5 minimums. I should add that some Institutions don't officially invest in OTC regardless of the price, it doesn't mean they won't invest, they just won't hold them over the quarter, so they need not report it. Again, the hope is always that before the end of the quarter the company is on a major exchange.
No doubt DI is hearing that certain Institutions will be in once $5 has been hit, they'd be violating their charter to tell DI they'll be in before. The reality is that if they're watching the company now, and they'll be in when they choose to be. Some may wait for $5, or even for a move to a major exchange, but some could be in now, or in the very near future if they're waiting to see the Journal, or perhaps hear that we've filed with the regulators. They won't admit they're in, but the will be, but they'll be out by the last day of the quarter, and they'll not report it.
Gary
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