Posted On: 04/14/2014 10:46:36 PM
Post# of 36729
Re: adam_terrence #31170
There's nothing inherently wrong with promotion as long as the promotion uses no false, misleading, or even exaggerated claims. In the realm of public securities overseen by regulators and rules, it's prudent to tread carefully especially because the SEC is on a short fuse nowadays re OTC microcap and pinks. MMJ sector is targeted. FINRA announced their derision of the sector last August. SEC Chair has said they're getting tough on questionable OTC stocks. AVNE and CANN were shots across the bow. PHOT was a broadside.
There are strict regulations with severe penalties attached in using the U.S. mails or the wires (telephone, internet, twitter etc.) to pump a stock using false or misleading statements in order to dump it on the market. They can strictly enforce these regs any time they wish. What are false and misleading statements? Often it's in the eye of the beholder. Even exaggerations can be considered misleading. The regulators decide, and the firm can makes its case to the contrary on the Grey Sheets.
This SKTO promotion campaign is over the top when considering the hundreds of thousands of dollars employed, the dozens of touts used, and the intensive saturation. It's insane to do this in the midst of a merger-in-process. Whoever is responsible for this excessive promotion should think long and hard about inviting disaster to the twin firms. SEC is looking for excuses to suspend MMJ. Suspend first, litigate later while the stock rots on the Grey Sheets. It's common sense not to give itchy-finger regulators reasons to act during this sensitive time, especially, on a silver platter.
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There are strict regulations with severe penalties attached in using the U.S. mails or the wires (telephone, internet, twitter etc.) to pump a stock using false or misleading statements in order to dump it on the market. They can strictly enforce these regs any time they wish. What are false and misleading statements? Often it's in the eye of the beholder. Even exaggerations can be considered misleading. The regulators decide, and the firm can makes its case to the contrary on the Grey Sheets.
This SKTO promotion campaign is over the top when considering the hundreds of thousands of dollars employed, the dozens of touts used, and the intensive saturation. It's insane to do this in the midst of a merger-in-process. Whoever is responsible for this excessive promotion should think long and hard about inviting disaster to the twin firms. SEC is looking for excuses to suspend MMJ. Suspend first, litigate later while the stock rots on the Grey Sheets. It's common sense not to give itchy-finger regulators reasons to act during this sensitive time, especially, on a silver platter.
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