My Experience with Grey Sheets Years ago, I bou
Post# of 36729
Posted On: 06/17/2014 11:30:36 AM
My Experience with Grey Sheets
Years ago, I bought Longtop Financial on the Grey Market. They were a fraudulent Chinese software company that once had a market cap of a billion dollars. The company made a software program that most of the banks and insurance companies in China used. They also made the firmware for over 10,000 ATM machines in China. I don't remember the story exactly, but the company was grossly overstating their revenue and earnings. The fraud even trailed back to local banks. After they were on the grey market for six months, I bought the stock for around 20 cents and it doubled and went to 40 cents. On some days, the volume was heavy and other days there wasn't much action. The US government ordered Longtop's leaders to appear before a judge in a United States court and defend themselves. When Longtop refused to comply with this order, the stock's registration was revoked shortly thereafter. The thing is, Longtop still had over 3000 employees and business continued as usual. As far as I know, to this day they are still going strong. Last year, a US judge awarded shareholders a billion dollars in a lawsuit. But, since Longtop is in China, shareholders don't have much chance of ever collecting anything. Now, someone on this board mentioned that the SEC cannot revoke SKTO's stock. Are we absolutely sure about that? Let's talk about this more. If the stock can't be revoked, then that makes a huge difference. It at least gives the shareholder slightly more peace of mind while holding in the Grey Market.
Years ago, I bought Longtop Financial on the Grey Market. They were a fraudulent Chinese software company that once had a market cap of a billion dollars. The company made a software program that most of the banks and insurance companies in China used. They also made the firmware for over 10,000 ATM machines in China. I don't remember the story exactly, but the company was grossly overstating their revenue and earnings. The fraud even trailed back to local banks. After they were on the grey market for six months, I bought the stock for around 20 cents and it doubled and went to 40 cents. On some days, the volume was heavy and other days there wasn't much action. The US government ordered Longtop's leaders to appear before a judge in a United States court and defend themselves. When Longtop refused to comply with this order, the stock's registration was revoked shortly thereafter. The thing is, Longtop still had over 3000 employees and business continued as usual. As far as I know, to this day they are still going strong. Last year, a US judge awarded shareholders a billion dollars in a lawsuit. But, since Longtop is in China, shareholders don't have much chance of ever collecting anything. Now, someone on this board mentioned that the SEC cannot revoke SKTO's stock. Are we absolutely sure about that? Let's talk about this more. If the stock can't be revoked, then that makes a huge difference. It at least gives the shareholder slightly more peace of mind while holding in the Grey Market.
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