For years there was only one reason that Huntingdon remained on the Over
the Counter Bulletin Board - Legacy Trading, often the lab's only market
maker, and probably the most stubborn supporter of HLS we've ever
encountered. Well after years of pressure Legacy has finally caved and
dumped HLS - and as a result, Huntingdon was delisted from the OTCBB and
is now on the lowly Pink Sheets, also known as the "Penny Stocks." -
stocks so worthless or volatile that most investors won't touch them, and
mutual fund holders and institutional investors are often legally not
allowed to invest in them.
Skip Bourchin from Legacy confirmed that the reason they pulled was that they were effectively given an ultimatum by their clearing broker Sterne Agee who said that if they didn't dump HLS then Sterne Agee would dump Legacy. Sterne Agee were the subject of a SHAC action alert very recently, and no doubt received plenty of emails and phone calls asking them to put pressure on Legacy.
So what does being on the Pink Sheets mean? Well the first thing to note is that the whole point of exchanges like the NYSE or the OTCBB is that they give you better liquidity for your stock. By being on the Pink Sheets you basically become pretty invisible to most share buyers with lots of brokers either not dealing on the Pink Sheets or on a very limited basis. This could have not come at a worse time for HLS who have to pay back $47 million in bonds on Sept 23rd this year. What a turn around over the past few months from standing on the trading floor of the New York Stock Exchange with 45 minutes to go before they ring the bell and your shares start trading on the largest stock exchange in the world to going in the opposite direction and ending up on the Pink Sheets.
The one thing you should never underestimate is SHAC because when the bell rang at the New York Stock Exchange HLS were not there but SHAC was. To view HLS on the pink sheets click here. (HLS trade as the stock symbol lsri)
What an incredible victory for the campaign! We will keep our eyes closely on Huntingdon should they pop back up on the OTCBB. Pat yourself on the back for a job well done and let this be a reminder to you of the power of action alerts - don't miss 'em!