The Motley Fool Discussion Boards
Stocks M / Manhattan Bagel Company
|Subject: Folder Closing||Date: 2/8/1998 11:07 PM|
|Author: FoolHQ||Number: 23 of 24|
The Motley Fool sets restrictions on the types of stocks that are discussed in the forum. One group of stocks that we don't allow are penny stocks. The NASD considers any stock that trades below $5 to be a penny stock. Therefore, one of our rules states that we will not open a folder for any stock trading below $5.
Now, some stocks that originally trade above $5 fall on hard times, or worse yet, go belly-up. So, while we may have originally opened a stock folder when it traded above $5, we occasionally sweep through and close all of those folders that fall below $5.
However, we realize that many folks are entrenched in the conversations and we don't want to close the doors right as it falls below $5, so we have a few fail-safe policies.
1. For existing conversations, we wait until the stock falls below $3. This gives users, and the stock, time to get themselves together and decide what to do.
2. We have a market cap. fail-safe of $200 million. This means that if the stock trades above $200 million, yet falls below $3, we keep it open.
Unfortunately, this stock meets neither of those and we must close the folder. We hope everyone understands our desire to keep the discussions away from penny stocks. We'll be closing the folder in 5 days time.
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