I hold a pink sheet stock. It has applied to be traded on the nasdaq. Will my stock become worthless if this happens, or will it benefit the stock price?
Traders call these stocks jumpers. It will benefit you greatly but it’s bad play that you should never do again. Pink sheets should be named pink sh*ts. Never invest in pink sh*ts or OTCBB stocks. Just say no.
I lost thousands of dollars trying to invest in jumpers. In one stock, I lost $10,000. That stock was called Plasticon (PLNI). I held it for 3 freakin years! What a waste of time and money that I can never get back. Jim Turek, the CEO of PlastiCON scammed everybody. He uses Investors Business Daily and Yahoo Finance to publish and run articles that were complete lies! He even filed false reports with the SEC some 2 years late! The SEC is going after Turek for fraud and are seeking jail time. Investors were simply screwed.
PLNI is not a rare event either. 75% of all companies listed on the pink sheets are scams. Think about it. Why would they be listed there if they were a reputable company? It only costs a couple thousand dollars to be listed on a major exchange. You can hire a company that will handle all the paper work and a public listing for you. No good company would ever elect to be listed on the pink sheets. The OTCBB isn’t much better.
Investing in pink sheet stocks and looking for jumpers is a fool’s game over the long run. More traders have been carried off the battle field in a body bag because they invested in pink sheet and OTCBB stocks than all other exchanges combined.
Stocks trading on the pinks have almost no legal obligations regarding disclosures. This means that you have no rights as an investor.