The Truth on Pink Sheet Stocks

Every so often, I’m asked for my opinion on a stock trading on the Pink Sheet, or more formally, the OTC markets. Simply put, if a company is serious about its business, it’s not on the Pink Sheets. It’s on a real exchange.

Here’s a study that looked at Pink Sheet returns from 2000 to 2008. A tiny few did well. The overwhelming majority did horribly. The median return was -97%.

Posted by on January 5th, 2011 at 1:48 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.