I receive 100′s of email blasts from “IR” companies touting OTCBB/Pink Sheet companies as the next “google” . The stock is going to run so get it now while you can. Stuff like that. I am sure you receive the same junk. The main problem with this type of “IR” is the OTCBB/Pink Sheet companies that hire these firms to tout their stock are wasting their time and money.
Unless the OTCBB/Pink Sheet company is Blue Skyed or has a Manual Exemption privilege in 38 states stock broker and investment bankers cannot recommend their stock to their clients. So the company never really gets real buyers for their stock. Just day traders getting in and out spiking the price/volume of the stock. Then once the “IR” contract is over usually in 30-90 days and $100,000.00 or more later the stock comes crashing down below where it started.
A Manual Exemption in up to 38 states exempts companies from costly filing requirements provided current information is published in a recognized securities manual. Brokers rely on this exemption to provide secondary trading in OTCBB/Pink Sheet companies. Stock brokers can solicit orders for over-the-counter stock in these states. This creates real buying from long term holders of your stock and provides access to millions of investors with online brokerages account. This is how you build new shareholders in your stock.
Online investors have access to your company profile, corporate information. Stock brokers can offer your stock to their client base. You get traffic to your website and a real story is born. Not hype!
So forget “IR” hype, $35,000.00 for one day blast, day traders setting up late at night buying $500.00 of your stock and selling at $550.00 for that quick “profit”. Do your company and your shareholders a favor and showcase your OTCBB/Pink Sheet company to 1000′s of financial professional, registered reps, fund managers and research analysts by getting your company Blue Skyed with a Manual Exemption and build real shareholder value.
Tags: blue sky laws, investor relations, IR firms, manual exemption, public company exposure, stock brokers, stock promotion
