The OTC Pink Market has some of the largest risk/reward out there. ”Pacific Equity” selectively looks at these micro-cap companies and asses if they are capable of”future growth.”
OTC Pink is an open marketplace that has no financial standards or reporting requirements. The stock of companies in the OTC Pink tier are not required to be registered with theSEC
. Companies in this category are further categorized by the level and timeliness of information they provide to investors and may have current, limited or no public disclosure.
OTC Pink Current Information
Companies that have submitted information no older than six months to the OTC Markets data and news service or have made a filing on the SEC’s EDGAR
system in the previous six months are rated as having current information. This category includes shell companies
or development stage companies with little or no operations as well as companies without audited financial statements
OTC Pink Limited Information
Companies that are unwilling or unable to meet OTC Markets’ Guidelines for Providing Adequate Current Information but have submitted some but not all of current information required are rated as having limited information. These are often companies with financial reporting
problems, economic distress, or in bankruptcy
OTC Pink No Information
This tier indicates companies that are unwilling or unable to provide disclosure
to the public markets. Companies in this category do not make current information available via OTC Markets disclosure and news service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as ‘dark’ companies with questionable management and market disclosure practices. Securities
of publicly traded companies that are not willing to provide information to investors are considered highly risky.
Caveat emptor – buyer beware
There is a public interest concern associated with the company. This may include a spam
campaign, stock promotion
or known investigation of fraudulent
activity committed by the company or insiders
. During a spam campaign, any stock that is not in the Current Information category will also have its quotes blocked on otcmarkets.com.