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Dear Fools,

As you may have noticed, the Fool has closed down a number of stock message folders throughout the forum. If you cannot find your folder, below is an explanation of why we removed certain folders. What follows is a brief description of exactly what we closed and why we closed it.

All folders with closing prices below $3 will be closed.

In keeping with our Foolish Foolosophy of not wishing to foster conversation of penny stock (defined as stocks trading under $5), the Fool has two policies, which you should be aware of about our message boards.

1) We will not open folders for stocks trading at or around $5. The Fool very seriously believes that the risk associated with penny stocks and the manipulation that can occur with these stocks is a huge detriment to individual investors everywhere.

2) In some cases, misfortune will happen upon a company and cause its stock to fall below $5. What happens then? The Fool recognizes that stock folders develop a community of loyal followers. We don't wish to hurt these communities, but at the same time, we don't want the discussions of penny stocks to continue indefinitely. Therefore, the following will occur should a stock fall below the $5 threshold.

- Once a stock falls below $5, the Fool will keep its eye on the stock. Hopefully, for the sake of shareholders, the stock will rise back above $5 and everyone will be happy.

- If the stock falls below $3, the Fool will post a message in the folder informing all of the readers that the folder will be closed in 7 days time. This will give shareholders time to discuss their game plans, and will also serve to close the discussion Foolishly.

All stocks that trade on the OTC Bulletin Board will be removed.

In the same spirit as the penny stock rule, we do not wish to foster discussion of bulletin-board stocks. The NASDAQ has certain requirements for eligibility on the National Market System or its Small Cap index. If a company is not financially sound enough to satisfy those minimum requirements, than we would prefer not having the discussion on our boards. Often, these stocks are thinly traded, with small floats and few market makers. They are ripe for manipulation.

Market Cap Fail-Safe Policy

The only exception to the "under $3" rule will be if a company still maintains a $200 million market capitalization after it falls below $3. This is to ensure that some massive company doesn't get excluded from our boards because it fell below $3.

The Motley Fool
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