Liberty Star Uranium & Metals Corp.
Combining Classic Mineral Exploration with State of the Art Technology
Message: Request for Withdrawal of Post-Effective Amendment No. 2 to Registration Statement on Form S-1
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Comment. With all of the refered to comunications now going on here under the cover of an C.A. aggrement and that Pink Sheets have greater liberty to opperate without any reporting that is in strict SEC guidlines other than for a company to have a name, shareholders and perhaps a DBA. Should a major (hint) that we are HOT and that they would like to PARD with an client that is Oh a more responsible PARD that at least puts cards on the table with the SEC. As a PARD/JV i would demand a reporting status or offer to buy out the "potential".
Points of view on Pinksheets:
The Pink Sheets
The Pink Sheets is a secondary market in stock trading accessible through the United States OTC market. Brokers who buy and sell securities on The Pink Sheets control the price levels of the secondary market. No regulation from the U.S. Securities and Exchange Commission exists for The Pink Sheets as it does for primary trading platforms such as the New York Stock Exchange. Without regulation, a company listed on (Pay attention on this point) The Pink Sheets does not need to inform anyone about its state of financial affairs, business initiatives and status of other investments.
High-Risk Investing
Buying stock using The Pink Sheets is risky because an investor lacks knowledge of a company trading on the OTC market. The majority available on this secondary market are companies primarily based in foreign countries that cannot gain access to primary trading markets or failing companies that have lost the financial clout to trade on more legitimate stages. The values of these stocks are also low -- $5 or less per share. To buy a Pink Sheet stock, a broker controlling the OTC market has to be willing to sell it. An investor must question whether the broker is looking to dump a stock that's about to fail or if the broker is looking to turn a profit on a stock about to rise even higher.
Selling the Company
A buyout of a company trading on the OTC market can occur at any time if a company gets an attractive offer. The lack of regulation in the company's reporting requirements does not prevent a shareholder trading in Pink Sheets from receiving a return on investment from the sale. The investor might wish to sell his shares before the company's purchase is final, but the company might seek to buy its own shares back to facilitate the merger.
Liquidity of Stocks
Allowing the parent company to buy back shares of stock on the OTC market might be the smartest strategy for stocks with little to no liquidity. This means the stock is showing little to no trading on The Pink Sheets and it's nearly impossible for an investor to see a return on the purchase. Selling the stock back to the company can allow an investor to gain some financial return, though the investor will lose the financial interest in the company and could also lose out on more lucrative stock if the company's sale allows for a transfer of stock options into the purchasing company.
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