OTC-pink sheets worth investing in? CYDY

Discussion in 'Stocks' started by x-rays, Jun 29, 2020 at 2:05 PM.

  1. x-rays

    x-rays

    I’m following a biotech stock CYDY that’s been on a tear recently. It trades OTC, but has high volume. It’s market cap of over 4 billion makes me wonder why it’s not listed on the major exchanges. Product pipeline seems interesting, esp for HIV treatment and for COVID, ie reducing the cytokine storm. Is this a pump and dump stock or do legitimate companies still trade OTC?
     
  2. guru

    guru

    Nintendo, Heineken, and a few other large ones.
    Those are usually foreign companies that don't want to deal with expenses and regulatory requirements of being listed on large exchanges. (besides of plenty of small US companies)
     
  3. xandman

    xandman

    ..like Accounting Standards.
     
  4. Last week I mentioned it, better price than today. I bought at $2 sold about $4, bought back at $3 holding to see where we go. Sngx is another one their promoting but I am not as thrilled as CYDY.
     
  5. m1nt

    m1nt

    OTC market makers don't have to honor firm bids. Bids in OTC land are like a jumping off point or an appetizer. This is in addition 99.99% being total BS.
     
  6. x-rays

    x-rays

    so, is the price action because of short covering? for the past 7 trading days, the chart looks parabolic
     
  7. m1nt

    m1nt

    Only market makers can technically short OTC stocks (borrow, sell and then buy back). Retail cannot. To short a stock, it must be marginable and OTC stocks are not marginable.

    But predatory financiers can print up gobs of fresh shares when a loan covenant is breached and dump on the market at deep discounts.

    I am not aware of this stock and have not looked at the chart.
     
  8. There are on and off chances that you can do well with OTC but because of not being listed on the major exchanges, there are doubts regarding it. If you want, a benefit of the doubt can be given to it as there’s no denying the fact that it is doing quite well in the current market.