2007 should be a banner year for reverse mergers.  OTCBB shells have a bright future according to the information we recently reviewed.

2006 OTCBB Statistics

The following information has been compiled using statistics from the OTCBB activity reports.  To the best of our ability here is what we have been able to uncover.  This will give our readers an idea of where the OTCBB is heading.

In the first three quarters (nine months) of 2006 approximately 130 OTCBB Companies graduated from the OTCBB to exchange listings on AIM (London) NASDAQ, American or New York Stock Exchange.  Additionally, Over 300 companies moved from pink sheets to the OTCBB.

During the same time period, 262 securities were delisted from exchanges (like the NASDAQ, American and New York Stock Exchange) to the OTCBB and 307 OTCBB companies were demoted from the OTCBB to “other OTC” markets, like the pink sheets.

There were 3,304 securities quoted daily on the OTCBB in July 2006 compared with 3,245 in July 2005.

The OTCBB continues to thrive.  During July 2006 over 37 billion shares traded in just under 1,000,000 transactions.  This is an amazing number considering that
broker dealers can not recommend OTCBB stocks to their customers because it violates the penny stock rules (recommending stocks under $5 per share).

Additional information can be found on the OTCBB website. A wealth of data is available there, including companies that have “graduated” to other exchanges, new additions to the OTCBB and other market statistics (click on “Market Statistics” and choose the data you want).

The OTCBB website is a great resource for information on OTCBB companies.  The site allows investors to research SEC filings, view stock charts, news and depth of trades on individual OTCBB listings.

While the “boiler rooms” and the pump and dumps have been replaced with more sophisticated types of illegal trading the SEC is cracking down hard on offenders.  Just this past week the SEC arrested 13 people including a husband and wife attorney’s (See article).  In a second, but unrelated, story W. Zehil, a former McGuireWoods law firm partner, was arrested on fraud charges for allegedly making almost $18 million in illegal trading profits in the securities of his clients.
(See article).

For more information . . .

. . . check out the Over-the-Counter Bulletin Board website (www.otcbb.com)

. . . visit the National Association of Securities and Dealers website (www.nasd.com) and/or

. . . visit the Securities and Exchange Commission website (www.sec.gov)

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