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Originally Posted by xray
IDK, but they do have pressure to get it back. |
There are two sides to this issue, and I really have no idea which side to take because I have seen both:
1. When stock is delisted and goes to OTC, any downward pressure is alleviated and stock has no where to go but up. If you think about it, by the time a stock hits OTC, sellers/doubters have already made their exit. Technically, a bottom is "formed."
2. When a stock goes OTC, no attention would be given to the stock. Analysts stop their coverage; mutual funds can't touch them; institutions (except for the risky few) generally won't go near them. The lack of attention brings very little upward momentum for the stock, and, if the company continues to sit idly without major news, the stock drifts lower and lower....
So..... it's a gamble, again.