You are correct, and you bring up a very important point. There are many OTC stocks that are hugely undervalued. That is because they are artificially undervalued due to the fact that many of those stocks have a NS component. LTDI is thought to have a NS position of around 600M. If you go back in the history of these stocks you find at the beginning they were worth considerably more & LTDI is no exception. NS positions can be established at the get go & continue all the way down to new lows & then kept there(boxed in). Hedge funds are mostly to blame & decimate micro & small cap Co's as well as targeted big board stocks. They play the waiting game, constantly feeding counterfeit shares into the system to keep the stock from rising knowing that most will go belly up because they have to dlute & R/S or Death Spiral finance, only the strong survive(LTDI). Quoting Jim Cramer "it's a fun game" for the hedge funds. Stats show that each year IPO's are getting less & less as the perception grows that if you go public you are going to get clobbered. Some elect to stay private, some are now are going to overseas exchanges to raise capital. Here is a documentary from the mainstream media that emphasises Co's getting hit hard early on.
News 
Market Data 
Discover 
