Flash! SEC Votes on Accredited Investor, “Say on Pay”

The Securities and Exchange Commission was very busy today in their latest work implementing the Dodd-Frank bill. In addition to proposing new rules relating to registration of investment firms (and unveiling a new proposed form to do so), they acted on the “accredited investor” definition in Regulation D, as well as the “say on pay” ...

Tip of the Week: Does a Shell Need Shareholders?

The marketplace for shells generally deems its shareholder base as an asset. The more shareholders a shell has, the better. Why? Several reasons. First, in general the more shareholders the more likely it is that heavier trading will develop, so goes the theory. Second, the OTC Bulletin Board unofficially requires at least 35-40 unaffiliated shareholders, ...

Dow Nears 12,000 – Can We Enjoy This a Little?

As we speak the Dow Jones Industrial Average is at 11,877.  How far we’ve come! In March 2009 it hit a low of 6,470 after hitting an all time high of 13,930 in October 2007. So we’ve recovered over 80% from the bottom. Another 17% rise and we break the all time high. This is ...

Time for Regulation A Reform? Part II

As mentioned in the prior post, Reg A lets you raise up to $5 million with an abbreviated SEC-approved offering circular. You don’t even need audited financials. Then your stock can trade over the counter, but your company is not an SEC reporting company and therefore cannot be listed on the OTC Bulletin Board or ...

“One Madman’s Act of Darkness”

A brief digression for a moment on the horrific shootings in Tucson, Arizona last weekend. At last night’s stirring memorial/pep rally, Arizona Governor Jan Brewer said that hope should not be shredded by one madman’s act of darkness, and she is right. In these moments, we are all Americans. We are all human. I was impressed ...

CNBC Joins the Chorus of China RM Nay-Sayers 2

Herb Greenberg, CNBC’s commentator on stocks, has joined with TheStreet.com, Barron’s, The Wall Street Journal and others who are blasting Chinese reverse mergers. He points to several CEOs with questionable backgrounds and the like. Yesterday he had a “faceoff” with David Gentry, president and CEO of RedChip Companies. As many of you know RedChip is ...

Time for Regulation A Reform? Part I

In early December, as the lame duck Congress was winding up its business, outgoing House Financial Services Committee Chair Barney Frank decided to hold a hearing on whether to reform SEC’s Regulation A. Apparently former Speaker Nancy Pelosi, who represents Silicon Valley interests, was also pushing for it. What happens now that the Republicans control the ...

Barron’s Hits China Again 1

Following a blistering attack on Chinese reverse mergers at thestreet.com (I am getting a copy of the whole thing – they interviewed me extensively – and will be reporting on it soon, but it has received coverage by Yahoo Finance), Barron’s has followed up its August blast with another one this week. This time, the ...

And thanks….

You have seen me a little less than normal in the last month or so. This is because my father-in-law was failing and I was spending a great deal of time helping out. As some of you know he passed peacefully on December 26. I cannot thank those enough who expressed their condolences to my wife and ...

New Year’s RM Wishes.. 7

My 8-year old is an avid Beatles fan so this year he decided to make New Year’s “revolutions,” but that’s for another day! Happy New Year to all my faithful blogees. Believe it or not we have been here for more than four years together watching dramatic changes in the economy, the market, the US ...