What are the main OTC stocks to watch?

Knowing what main OTC stocks to watch can be a complicated situation based on a number of variables. OTC stocks are associated with all kinds of problems and scams, but in the middle of the entire mess there can be some very excellent investments.

Researching the question why a company is on the OTC market is the first step. There are the usual negative reasons: bad or questionable credit and poor performance, but the company could also be too new to have established viability to be accepted in the restrictive guidelines and requirements set up in the standard market.

There are companies that have a long term history of a good track record and one bad corporate decision created a situation of loss. This can easily happen as a company diversifies and expands their line of business. They may have been de-listed from the standard market. Keeping a look out for those types of companies is very important. They are likely to have a quick bounce back or turn around time. You should have able to invest prior to their entrance back into the standard market.

I once worked at a company in Florida that was a division of another company out of state. The internal staff knew that the bookkeeping and accounting practices of the parent company were absolutely off the wall illegal. Fear of losing their jobs kept them quiet. But, as all things, the word trickles down through the ranks. As the economy flourished, the stock increased in value. That is, until the day when the auditors showed up and everything changed. The parent company fell into the OTC market where it remained for a number of years. Time passes, things improve and the company regained its position in the standard market. I can heartily tell you that, although it was never talked about, none of the employees invested their personal money into stocks for the company. It wasn't insider information, just common sense.

Another key component to the main OTC stocks to watch are social and economic trends. It may have taken generations, but society is finally turning their interests toward the green footprint. Green companies are becoming the biggest interest in the OTC market. Most of them are good companies but due to their young history, cannot make it to the standard market yet. There are major investments being made in companies that work in the green technology business. As with any increase in interest, you must do the same investigation to help to guarantee that you will be making a sound investment. There are hushed whispers that, like all of the other bubbles before them, the green bubble will reach its mass capacity and burst.

There are always risks involved in OTC stocks. It's the nature of the beast. Measure your particular risk ratio to see if the OTC market is the direction you need to be in. Pay for the services of an investment counselor. This is what they do for a living and they can help you make some decisions based on their knowledge and experience.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.