Pinksheets.com News Service For Shareholders - Criticized as being too little, too late by grass roots penny stock reformist

The Pink Sheets are coming of age in perhaps one of the better moves they've made in years. As a continuing effort to create more transparent and efficient OTC markets, Pink Sheets LLC, announced the launch of Pink Sheets News Service, an innovative publishing tool for OTC issuers last October. The news service allows issuers to publish in real-time their news releases and financial reports on www.pinksheets.com, the leading source of information for OTC Markets.

Some on Wall Street speculate that PLINK was developed in response to the changes taking place at the Bulletin Board's new BBXchange (www.bbxchange.com) which was slated to open in January and is now delayed until the end of the year as regulators debate its rules and governance.

The BBX is a proposed new marketplace that will eventually take the place of the OTC Bulletin Board (OTCBB). The BBX will appeal to many of the same companies that are currently quoted on the OTCBB, but will be a higher quality market. These changes, while an advantage to many companies, are also a call to action for the Pink Sheets if it is to compete.

When the BBX does go into affect many companies will not elect to join, instead they're expected to move to the Pink Sheets were reporting requirements are not as strict.

What's prompting those decisions are rules relating to corporate governance that require audit committees and more independent directors. For smaller companies the costs associated with complying to those rules are too much to bare. Instead, many will elect to switch to the Pink Sheets.

With many companies undecided on switching exchanges, some on Wall Street speculate that Mr. Coulson's move into expanding his services at that time were very coincidental to his desire to gain market share over the BBX. Some brokers believe it took opportunity rather than integrity to see the Pink Sheets LLC finally offer a means for brokers and shareholders alike to access news and information. Axcess Business News wonders if Mr. Coulson would have been so quick to announce Plink had he known the BBX's launch would be delayed.

Cromwell Coulson, Chairman & CEO of Pink Sheets LLC, in a press release issued Oct 16 2002 said, "OTC issuers will now be able to reach their stock holders and the interested public with their corporate information and investors will be empowered to make more informed decisions. By improving the availability of information, we hope to bolster the integrity and growth of OTC markets."

Investor concerns over the lack of information about companies that trade in the Pink Sheets has been growing for some time and while those latest improvements were well received, to some its not enough. Mr. Ian Park, a college student in Florida who had been swindled in a penny stock scheme was frustrated over the lack of concern by regulators - and Mr. Coulson, to improve the OTC market's reporting requirements. He formed a grass roots organization he called "Project Penny" and began soliciting the Securities and Exchange Commission, the NASD and Mr. Coulson to consider adopting more stringent disclosure rules.

Mr. Coulson was quoted in response to Ian Park's plea for help as stating, "I agree that it is important for regulators to review the rules applying to OTC trading as part of the BBX becoming a listed exchange and there are areas which should be improved immediately, such as the immediate need for short position reporting and disclosure for all OTC equities, but more importantly, regulators should put in place a process to deal with needs that arise over time."

Axcess Business News has been covering Project Penny and Mr. Park's grass roots organization extensively (see, Stock Fraud, Swindles and the American Way). Over time, Project Penny has gotten support from Congressmen, influential securities lawyers and thousands of individuals who want improved disclosure and recently even the Securities and Exchange Commission is beginning to listen to Mr Park. Perhaps Mr. Coulson is beginning to listen as well.

In response to the Pink Sheets LLC's news service that helps shareholders and brokers alike obtain news on companies, Mr. Park of Project Penny (otcfraud.com) said, " The Pink Sheets has been receiving continued pressure from organizations such as mine that are demanding significant improvements and changes be made to the Pink Sheets. I believe we are finally beginning to take steps in the right direction."

Related Articles:

Stock Fraud Swindles and the American Way
November 2002 - While new rules on corporate governance have been taking effect little has been done to stop penny stock schemes and swindles. One man took it on his own to do something about, forming a grass roots organization dubbed, "Project Penny.

Stock Fraud Swindles and the American Way Part II
December 2002 - A college student in Florida who had been swindled in a penny stock scheme formed a grass roots organization he calls "Project Penny" in an attempt to sway regulators to adopt more stringent rules. We caught up with Mr. Park, taking a second look at Project Penny and his progress.

Wall Street's Changing Landscape
Sept 2002 - With the NASDAQ's loss of many companies, few are taking notice of the new BBX exchange.

Rating The Stock Touts - who are the better swindlers
Repeatedly Americans have seen news on the pending fines against some of Wall Street's better known investment banking firms, waiting for regulators to act. And what an act it was.

Link To Ian Park's Grass Roots Organization:

Project Penny: www.otcfraud.com
Grass roots organization attempting to reform penny stock rules. Founded by Ian Park. Mr. Park is what reform is all about. We need more people like him who'll stand up to Wall Street and Washington. I urge you to click on his link and join his grass roots campaign to reform penny stock rules! I gave him three rabbits, our highest relevant rating for a link!

Axcess Business News will continue to report on the Pink Sheets, BBXchange and Project Penny's activities for our readers. Watch your in-box for any news alerts on this and other late breaking business news. If your not a member, consider subscribing now and you can get these great market alerts too!

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