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Think or Swim

12/17/12 1:50 PM

#133160 RE: stlsmitty #133159

KMAG deregistered its stock. They can not be suspended for not filing audited financials...
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DragonBear

12/17/12 3:34 PM

#133181 RE: stlsmitty #133159

Suspension is a tool that the SEC can and does utilize.

Yes, in order to protect the investor from fraud they have detected.

Would surging sales or claims of alone be grounds for the SEC to suspend a stock? Doubtful. Too many companies can help huge gains, especially after hitting a bottom.

What does seem typical is the SEC comes in 6-12 months after stock issuance explodes, especially when the stock has been issued to insiders, and/or unknown sources, and a pump-a-rama has occurred, with heavy volume.

IMO, the SEC would never have bothered this stock if the authorized count was still sitting at 175M, with a total of 140M issued as was the case in Jan 2011. Without the authorized bouncing around from 175M to 1B, and back to 750M a lot less noise to attract their attention. A potential Form 10 is going to be very interesting for this stock.