OTC stocks are the extreme grey zone of micro cap stocks and are some of the most dangerous. This is because sometimes regulation sneaks up on you.
Always search OTC stocks and make sure they are pink and report financially and are actually operating companies. Don't ever invest in shell companies, expert market or shady companies. Many brokers or banks will actually prevent you from doing so, that's for your own protection.
A case in point this week are companies like $INTEQ. It lost 99.36% of its value at the end of September, 2021. It's estimated with the new crackdown on OTC stocks, hundreds to thousands of stocks will go the same route. Buy beware, just look them up on OTC markets. Understand if they are real startups or companies that just never went anywhere.
The September, 16th, 2021 ruling is really key for OTC markets. The Securities and Exchange Commission on that day adopted amendments to Exchange Act Rule 15c2-11, an important component of the over-the-counter (OTC) market regulatory structure.
There are 7,500 followers of $INTEQ on Stocktwits, how many of them do you think understood the risks? This may be one of the worst markets for penny tocks I've ever seen. Even with so much liquidity sloshing around, a lot of young people prefer trading in crypto.
The company kept on reporting positive news and it's unclear at what level of restructuring in bankruptcy it's at. After all, space tech is supposed to be a good bet for the future. As the foundational architects of satellite technology, Intelsat operates the world's most trusted satellite telecom network. When they have a ticker that's not on the OTC, they may be worth another look.
A large majority of the OTC markets are going to get a very aggressive haircut and investors need to do their due diligence now more than ever. Companies go bankrupt and they become good deals sometimes, like $TUEM. These are the kinds of companies I like to watch, but it takes a minimum of effort.
It's crazy that such a Sat-tech company can have such a day on the OTC. Intelsat is building the future of global communications with the world's first hybrid, multi-orbit, software-defined 5G network designed for simple, seamless, and secure coverage precisely when and where our customers most need it. Buyer beware this is not a normal market.
Have we ever seen such a massive correction in the OTC markets due to new rules and regulations? The bloodbath is just starting.
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