Friday, June 3, 2011

Pink OTC Markets Inc. (PINK: OTCM) and The almost new color codes for small cap and micro cap companies

When looking at small cap stocks, there is only one name that is considered a leading in the trade game: Pink OTC Markets Inc. (PINK: OTCM). The company over the past few years has been on a marketing campaign to clean up the image of the Counter, and we think it is working. First, what Google finance summarizes about the company:

Pink OTC Markets Inc. (Pink OTC) is a financial information and technology services company that operates the electronic quotation and trading system in the United States Over the Counter (OTC) securities market. Through its Pink Quote interdealer quotation system and Pink Link trade messaging system, the Company offers broker-dealers an independent, electronic platform to display their real-time, firm bid and ask quotes and communicate OTC trade information with each other. These systems generate a substantial amount of OTC market data, which it licenses to OTC market participants.

But wait! There's more! The realness in this company is what they have done for the over the counter market in the last few years. First, a little background. The over the counter market, including the pink sheets market, have been the stone hedge of manipulation and fraud. Pink OTC Markets Inc. has been trying to combat this, and in our opinion has succeeded with thier colorful chart. Okay, that was a bit of an undervauled description of what they have done. This is what the Pink OTC Markets have to say about thier new tiers:

Due to the wide range of OTC companies, OTC Markets Group developed the OTC Market Tiers to help bring increased clarity, transparency and disclosure to the OTC Market. All non-OTCQX OTC securities are assigned a Market Tier based on their reporting method (SEC Reporting, Alternative Reporting Standard) and disclosure category – Current, Limited or No Information.

In addition one should be aware that tickers on Google finance and Yahoo finance alike must now be coded with PK in front of the ticker to show that they are listed "over the counter". Much attention should be shown to the OTC Markets website, which gives an abundance of information on over the counter stocks. Do not get stuck in the bubble, these are super risky stocks and companies by nature. Please read our disclaimer. We should not be a sole source of investing information.

This is one of the new logos for the top tier on thier counter. To see all classifications or companies in the small cap over the counter market, see

Safe Investing

Disclaimer/Notice: We currently own Jones Soda Company-JSDA (100 Shares of Common Stock), Edgar Online Inc.-EDGR (100 Shares of Common Stock), Crystal Rock Holdings Inc.-CRVP (270 Shares of Common Stock), Jamba Inc.-JMBA (100 Shares of Common Stock), Reddy Ice Holdings, Inc.-FRZ (105 Shares of Common Stock), Enlightened Gourmet Inc.-ENLG (15,000 Shares of Common Stock), Books-A-Million, Inc.-BAMM (50 Shares of Common Stock), General Electric-GE (16 Shares of Common Stock), Yahoo Inc-YHOO (12 Shares of Common Stock), and Hot Topic, Inc.-HOTT (43 Shares of Common Stock). Owning a postion in a company gives us an obvious bias in the preference of our stock choices. Please read our disclaimer. We have not been paid by anyone, as of today's date, to profile any companies on this or any site.

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