Expert: Dr. Joseph de Beauchamp - 7/22/2005

Question
A stock I own had trading halted today. Why would they do that and what does that mean to me as an investor?

Answer
Bill,

They do not have to give a reason. This also means that all emails and communications are routed directly into the SEC. Usually, it is for delisting the company. This means it will go to pink sheets, and take a very long time to bring back on the OTCB. Most of the time, stock that get dropped like this, they fall 50% on the next trade that could be in several months or weeks.

Hm, let's see what would I recommend, flying blind here. I do not know the stock or the situation. Based upon my experience, I would call your broker and put in a "market" order to sell all on the next opening price. After you are out for more than 31 days, you can take a look at purchase again, and you get to keep the tax loss. In this way, you can watch and see what happens after 30 plus days of trading. At least you will have your tax loss.

I have yet to recommend staying in a company that has been halted.

Dr. Joseph de Beauchamp