Pink sheet stocks?

Question

I FOUND A COMPANY ON THE PINK SHEETS who says they have about 5 bil in assets and make 300 mil a year they also say that there in a quiet period with the sec am i getting my leg pulled i hope not

Answer 1

No one can tell you from the information in your question.

Certainly companies that large have been on the pink sheets before and will be again. HealthSouth and Enron are two examples I can think of immediately. They were both huge companies that cooked the books Both went to the pink sheets after the fraud was disclosed.

I don't believe a larger company trading on the pink sheets is signifcantly safer than a smaller company trading on the pink sheets, but I do not have any data to support that belief. You could have lost your entire investment buying Enron when it was on the pink sheets. On the other hand, if you had bought HealthSouth near it's low on the pink sheets you could have had a fabulous return.

Pink sheet stocks are high risk investments which may (or may not) have a chance of a high return. You need a lot more information to determine if the risk is justified. The information you need might not be available.

Answer 2

pink sheet wannabees look here!

http://www.pinksheets.com/about/pr_041207b.jsp

any further babbling on pink sheets will get this same response.