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OTC BB Volume

Yet another chart of the Bulletin Board volume:

>

Insane!

We previously looked at this here, and discussed it in this column.

Jason Goepfort, the source of the original BB volume chart, specifically notes this is NOT a function of ADRs (as some have suggested):

"There was a jump in the share volume in ADRs last month, but…their total volume was 0.01% of the total. All foreign securities made up 0.65%. The other 99.3% of share volume was all domestic securities, and non-ADRs."

>

Source:
The Dash to Trash
James Montier
Investors Insight, Monday, April 24, 2006
http://www.investorsinsight.com/otb_va_print.aspx?EditionID=313

Monday, April 24, 2006 | 10:27 PM | Permalink | Comments (9) | TrackBack (1)
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Comments

Markets appear to be very strong still. Do you have a time frame for the market correcting? A few weeks? A few months?

-Joe

Posted by: Joe | Apr 24, 2006 10:45:02 PM

This has to end very badly. But how to best take advantage of it?

Posted by: jim | Apr 24, 2006 10:58:53 PM

I'm curious if there are any stats on which sectors are getting the inflows...tech? biotech? junior miners/exploration?

Any idea Barry or is it a marketwide phenomena?

Posted by: Alaskan Pete | Apr 24, 2006 11:25:45 PM

Speculation? Greed? Excess? Invincibility? No Fear? Nah. You know this is the start of the next bull market. The Fed is nearly finished and we've just begun our march to Dow 30,000. That would be Dow Transports 30,000.

There is no speculation as far as I can see. This is simply amazing. I could just kick myself for selling too soon. One of my former favorite stocks, TIE. Here's a $5 billion market cap company that is up 45% in a week. Err, it's $5 billion now. It was 45 cents four years ago. The PE is only 39 at peak earnings. Uh, I'm quite sure TIE has never seen anywhere near a PE of 39 at peak earnings. US Steel would be selling at $300 with this PE. I guess deep cyclicals are now valued as growth. Oh, I forgot, in the new economy we don't have cycles. It's just constant growth. I mean WTF. These dumbasses are driving three themes through the roof because that is all that is working. Might someone tell me how this is any different than tech in 2000? The higher it goes, the likelier the size of the mess increases.

Posted by: B | Apr 24, 2006 11:27:41 PM

Mad Money made stocks fun again... Jim should get most of the credit here!

Posted by: todd | Apr 24, 2006 11:40:34 PM

Would be interesting to get a break down. I bet it's junior miners. Potential zinc mine in Mongolia sort of thing. There seem to be approximately 30 million junior minors out there.

Most of this stuff had already doubled or tripled when Cramer got aboard.

Posted by: Brian | Apr 25, 2006 12:13:41 AM

I agree that it is probably a lot of junior miners. If you troll the yahoo PM-related boards you'll see hundreds of Canadian pink sheets being touted. It's the new dot.com.

Posted by: Rusty | Apr 25, 2006 8:38:56 AM

I have observed that inflows to emerging market equities are past the 4th std dev.

Posted by: Gildo | Apr 25, 2006 9:52:16 AM

Barry, thanks for following up on the ADR volume. Looks like there's still relatively few retail investors in the US who have realised there's a secular bull happening in the BRICs and that they can buy into it through ADRs.

No doubt this trend will attract more and more attention as time passes, especially if the US market cools in the second half, and so would be good subject matter for your blog. The stocks mentioned in my previous have already doubled since 2005 and still have a long way to go... and there are many others out there. We're seeing 1949-1966 all over again, except in the BRICs it's happening much faster.

Posted by: Mythiot | Apr 25, 2006 5:46:47 PM