It really means nothing.

I interpreted LouAnn’s remark to mean that, as far as actually trading the stock, the change from NASDAQ to OTC meant nothing for the average shareholder. It appears that she was really forecasting the effect on the value of the stock when the change took place. PNBC stock closed at $0.20 today. That’s right, twenty cents per share. All the shares put together are worth less than $700,000. Let’s put that in perspective. At $30 per share, and that was not the highest, the stock was valued at over $99,000,000. Ninety Nine Million Dollars. Now it is worth less than Seven Hundred Thousand Dollars.

In my terms, every One Thousand Dollar investment the shareholders had, turned into Seven Dollars and seven cents, as of today. Is it time to buy more or wait until the market softens a little?

31 comments on “It really means nothing.

  1. The question has been asked if it might be the time to buy more shares? I decided to look at the insider transactions to try to get a feel for what the insiders are doing. I see no sales from insiders yet. This to me is a positive. Tom is the only consistent purchaser. He must subscribe to the employee stock purchase plan as all his purchase’s take place at the end of each quarter. All his purchase’s except for the December (acquisition non open market) total about $1200.00 a quarter. We have now closed another quarter and I am interested to see what he did. I don’t know how many days he has to report this information but I will be watching. I have listed the transactions below for you to do your own due diligence.

    Mar. 30 2011 227 shares $5.28 each
    June 30 2011 227 shares $5.00 each
    Sept. 29 2011 475 shares $2.95 each
    Dec. 30 2011 10,000 shares $1.53 each ( I would guess this to be an option purchase)
    Mar. 29 2012 363 shares $ 3.30 each

    • What will determine the point at which the bank can cease reporting to the SEC entirely. Will the number of shareholders drop below 500? Is it considered a microcap stock?

      • The OTCQB site states the following:

        “OTCQB is the venture marketplace for companies that are current in their reporting with a U.S. regulator. There are no financial or qualitative standards to be in this tier.”

        I would say based on the above, that as long as they maintain the OTCQB listing, they will have to report to a U.S. regulator.

        I would find it difficult to imagine less than 500 shareholders. Is there some significance to dropping below 500?

        The definition that I find for a microcap stock is a stock that has a market cap of 50 to 300 mil. So I guess by that definition it is not a microcap stock. But it would be a small cap stock.

      • The number of shareholders must fall below 300. The number for starting to report is exceed 500, but must get to less than 300 to stop reporting.

  2. It may mean nothing, but it seems that when a stock moves from the Nasdaq to the OTC, it becomes more volatile. Why? What basically causes this?

    Maybe the inexplicable allure of penny stocks or nickel slots? Or long-shot bets, like the lottary? Maybe some people are intrigued by the opportunity to buy 1,000 shares of a company for $200?

    Seemingly, the answer, if any, involves human psychology

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