Posted On: 09/13/2015 12:16:27 PM
Post# of 30034
From http://otcjournal.com/The-Power-Of-Up-Listing...0150912-1/
The Power Of Up Listing
The goal of nearly every small and microcap company relegated to the Bulletin Board, or what has today evolved to the OTCQB, is to up list to either the NYSE MKT or the NASDAQ.
The OTC used to be a reasonable place for small companies to live, but the SEC and FINRA, in their unending effort to decide what you should be allowed to invest in, has made these smaller exchanges a much more difficult place to raise capital, thereby choking small companies of the very fuel they need to grow big and strong.
While most never make the promised land, a little selectivity can go a long way towards identifying those that will.
Over the years I've covered dozens of stocks that have up listed- ZAGG, NTWK, HYPD, and FRPT to name just a few giant wins.
Each and every up listing I've ever covered has one thing in common- it's always been good- there's never been a bad outcome over the short to medium term for the stock price.
In order to up list, a company must go through a rigourous review by the exchange for the process to complete. Often the up listing is accompanied by a reverse split in the shares in order to attain the price to qualify for the listing. Under certain exemptions and conditions an up listing can occur at $2 per share, but $4 is generally the accepted norm.
Take this company for example. SingleTouch (SITO) is a stock I covered in 2008 and 2009. The stock traded well for a while, then succumbed to disappointment. Nevertheless, I've stayed in touch with the company and followed it through a major management change and a recent growth phase (5 years late).
In late July SITO completed a 10 for 1 reverse split in order to achieve the required price for an up listing. Temporarily, SITO traded under the symbol SITOD post reverse.
On August 10 SITOD ceased trading on the OTC QB and up listed to the NASDAQ where the symbol then reverted to SITO.
And, while it took about a month, SITO has of late been surging to the highest price the stock has seen June of 2014.
As you can see from the chart, in the last two days SITO has surged from just under $4 to nearly $5.70, and traded over 100,000 shares on Friday - that would have been 1 million shares before the reverse split.
While SingleTouch might go higher, for my money I'd rather have been accumulating this stock back in the $3.50 to $4 range- let someone else buy it higher.
The reverse split allows the stock to trade up much more rapidly. After all, it reduces the supply to 1/10th of its former size, and if you owned the stock and it was up listing to NASDAQ, why would you sell it? Therefore, you have increasing demand for a smaller number of shares, and not much supply.
You might ask why am I bringing this to your attention now? Because on Tuesday at the market open, I plan to bring a similar situation to your attention.
And, yes, it's a company I've covered in the past. It's top line is many times greater than SITO. In my view, it's absurdly undervalued, and you will be getting the 411 before the process is completed, thereby putting you in place to own this stock at an exaggerated undervalued level before the up listing takes place. I'm going to be vindicated on this idea.
I'm bringing this to you today because I'll be out for the Jewish Holiday on Monday.
Remember- in 18 years I've never seen an up listing that didn't work out for shareholders. This stock should be no exception.
The Power Of Up Listing
The goal of nearly every small and microcap company relegated to the Bulletin Board, or what has today evolved to the OTCQB, is to up list to either the NYSE MKT or the NASDAQ.
The OTC used to be a reasonable place for small companies to live, but the SEC and FINRA, in their unending effort to decide what you should be allowed to invest in, has made these smaller exchanges a much more difficult place to raise capital, thereby choking small companies of the very fuel they need to grow big and strong.
While most never make the promised land, a little selectivity can go a long way towards identifying those that will.
Over the years I've covered dozens of stocks that have up listed- ZAGG, NTWK, HYPD, and FRPT to name just a few giant wins.
Each and every up listing I've ever covered has one thing in common- it's always been good- there's never been a bad outcome over the short to medium term for the stock price.
In order to up list, a company must go through a rigourous review by the exchange for the process to complete. Often the up listing is accompanied by a reverse split in the shares in order to attain the price to qualify for the listing. Under certain exemptions and conditions an up listing can occur at $2 per share, but $4 is generally the accepted norm.
Take this company for example. SingleTouch (SITO) is a stock I covered in 2008 and 2009. The stock traded well for a while, then succumbed to disappointment. Nevertheless, I've stayed in touch with the company and followed it through a major management change and a recent growth phase (5 years late).
In late July SITO completed a 10 for 1 reverse split in order to achieve the required price for an up listing. Temporarily, SITO traded under the symbol SITOD post reverse.
On August 10 SITOD ceased trading on the OTC QB and up listed to the NASDAQ where the symbol then reverted to SITO.
And, while it took about a month, SITO has of late been surging to the highest price the stock has seen June of 2014.
As you can see from the chart, in the last two days SITO has surged from just under $4 to nearly $5.70, and traded over 100,000 shares on Friday - that would have been 1 million shares before the reverse split.
While SingleTouch might go higher, for my money I'd rather have been accumulating this stock back in the $3.50 to $4 range- let someone else buy it higher.
The reverse split allows the stock to trade up much more rapidly. After all, it reduces the supply to 1/10th of its former size, and if you owned the stock and it was up listing to NASDAQ, why would you sell it? Therefore, you have increasing demand for a smaller number of shares, and not much supply.
You might ask why am I bringing this to your attention now? Because on Tuesday at the market open, I plan to bring a similar situation to your attention.
And, yes, it's a company I've covered in the past. It's top line is many times greater than SITO. In my view, it's absurdly undervalued, and you will be getting the 411 before the process is completed, thereby putting you in place to own this stock at an exaggerated undervalued level before the up listing takes place. I'm going to be vindicated on this idea.
I'm bringing this to you today because I'll be out for the Jewish Holiday on Monday.
Remember- in 18 years I've never seen an up listing that didn't work out for shareholders. This stock should be no exception.
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