Thread by @billsstocks1

#NavigateTheOTCJanuary

1/26/21 - OTCMARKETS SIGNS FOR #OTC #STOCKS

Most traders are familiar with OTCMarkets.com. The website gives details on a stock like share structure and filings. There will be a flag like a stop sign or a yield sign indicating its filing status.

1) CAVEAT EMPTOR (AKA THE SKULL AND CROSSBONES) - This means something suspicious is going on or has gone on with the stock. Triggers can be a questionable promotion, past scams, a suspension in the past, or fishy ownership. Unless filings hit (and even then wait), stay away!

2) STOP SIGN - Filings have not been filed on time so the company needs to catch up. Many of these aren't good securities, but if there was a recent reinstatement (company updated profile checkmark) or filings are starting to pour in, a stop sign that has been asleep for years is

one of the best buys you can make since the stop will become a yield and pink current will be on the way. I've made a lot on such stocks. But if it's dead in the water, find something better. Below is an example of a stop sign security.

3) YIELD SIGN - This means that there is limited information but not all information (such as an attorney letter for being current) to be current. If a stop turns into a yield and the filings complete, expect pink current.

4) PINK CURRENT - Filings are up to date on these stocks, and brokers generally don't restrict trading of such stocks. If a pink current stock has catalysts, it makes an attractive investment. Just make sure the company keeps filing quarterlies!

5) OTCQB - What's better than pink current for OTC? Being up listed to the OTCQB or OTCQX. To trade on the OTCQB, a stock must have a price greater than 0.01 for at least 30 consecutive days. The filings must be current like a pink current stock. If a company is in even better

standing, it will be listed on the OTCQX. Being listed on the OTCQX could eventually send a stock to the NASDAQ, AMEX, or NYSE. It's not super common but it happens!

6) DELINQUENT SEC REPORTING - Unless it's CBBT which is working on getting to the OTCQB, STAY AWAY! These stocks can and do get suspended by the SEC (along with skull and crossbones that don't file). You won't see a sign but a note that says "Delinquent SEC Reporting".

7) GREY MARKET - If a stock gets suspended by the SEC, it goes to the grey market after the 2 week suspension is lifted. The bid and ask don't show up for greys , and most stocks in the greys are a lost cause. So cut your losses, use it as a tax deduction, and move on.

So hopefully you gained an understanding of the signs on OTCMarkets after reading this. Be sure to use them when doing your research and determining the catalysts. Tomorrow, I will discuss the steps of a reverse merger (by @WildRhino) which can be a big money maker.