Friday, April 1, 2016

Fidelity blocks dark companies

Well chalk up today to a bad day.  I found out this morning that Fidelity has decided to block companies marked with a stop from otcmarkets.com.  This includes at least the companies on otcmarkets Caveat Emptor list.  Generally for me this means Fidelity is blocking companies that don't file with otcmarkets.



I manage several retirement accounts through Fidelity so I guess I'll be moving those.  Problem is my company uses Fidelity for the 401k so I can't move that one.

For example Fidelity will not allow me to buy HEMA stock anymore.  I asked why and was given the usual stuff about how it's risky due to a low price and lack of information.  They don't care that HEMA does produce reports which are available on their website.  Similarly they block other companies that only send reports to shareholders.  They still allow me to buy ADDC presumably because of its higher share price.

Another blocked stock, recently profiled by Oddball stocks, is Hanover Foods (HNFSA).  Again due to lack of information even though this company does provide reports to shareholders.

Something changed at Fidelity and I wonder why.  Two weeks ago they accepted an order of mine for a stock that is now blocked so this change is recent.  I was on chat with customer service for over 3 hours this morning and unfortunately was unable to get any information on why the change.  I chatted with one guy then his boss.  These men called all around Fidelity and were unable to find information on how these decisions are made, who makes them, and what caused this recent change.  Maybe that's typical for a large corporation and it stinks.  They are going to keep poking then email me if they find anteing but I won't get my hopes up.  I think

Later on today I'll complain to otcmarkets about this.  Probably won't get anywhere but you have to try.  They have stop designations on companies due to "lack of information" when in reality that information does exist but they are too lazy to find it.

Has anyone had a similar experience with their brokerage house blocking these companies?


13 comments:

  1. CapitalOne also restricts purchasing some dark companies.

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  2. Thanks.

    I need to finish up my investigation and do a follow up post. And figure out what to do with my accounts. I talked to about 10 different brokerage houses. Most will allow trading on dark companies. Some restrict dark companies, some restrict grey market.

    I have found brokerage houses that will allow trading on all dark companies, so the issue has become transferring an IRA holding OTC stocks. Most will not allow this. Only IB so far has said they will let me transfer without liquidating all my OTC stocks. I need to follow up

    Unfortunately my 401k has to stay with Fidelity. They are horrible. I have pleaded my case more than once but they don't care. They don't know how or why the change was made to block dark companies, they don't know who made the call or who can change it. All I get is nonsense about how they perform reviews on offered products and somehow must have decided dark companies were too risky. Nevermind the fact that I don't pay them to offer me advice and they let me buy the stocks a few months ago and their currently policy of allowing me to sell but not buy will only serve to manipulate the price down...OK I'll stop ranting now. I wish they would just let me sign a waiver acknowledging risk then move on

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  3. So even if I call it in no stop signs allowed at all or just some?

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    1. Calling in doesn't change anything. But it's not quite all stop signs. For example ADDC has a stop sign but Fidelity will let you buy it, I think because the share price is out of penny stock range. For Fidelity just search for the ticker and if they show you a quote they'll let you trade it.

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    2. This totally sucks and im fixin to move my money elswhere,Some idiots ghese people are I take the risk not them!!!

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    3. Yea for sure they act as if they own your money.I had ,y wife call in anorder for RSII when it was at .0012 for 3 million shares.The guy told her it woild make the stock more illiquide.I told her go ahead and tell him you want it.The stock went to .029.....

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    4. SCHUM... you are incorrect.. CBIS and all stock tickers are reviewable on FID web site...still cant trade

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    5. Well there's a first time for everything

      Looks like Fidelity has made some changes to their website. You can now see the charts and info on the Stop Designation List companies but still not trade them. They've also modified their warning messages. I guess it's an improvement

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  4. The other day I tried buying a dark company through Fidelity. Hadn't tried for a while so I just wanted to test them. I'm still blocked but at least now they give a more descriptive reason:

    "Error:(TC9052) Opening transactions for Pink Sheets (without information) are not permitted because of the risks associated with these securities and all Microcap securities."

    It used to just say something about being restricted so call customer service.

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  5. im in the same boat, I had called and was upset, but for our protection. It should not matter to them.

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  6. Please look at ADPTQ. Just a month ago I tried buying 25000 shares at $0.25. Stock was then at $0.24. Fidelity won't let me after letting me buy a day earlier at $0.39. I called their number and an active trader guy came on. He tried to place the trade but could not. He asked me to hold as he checked to know why. He returned and said apparently they decided for some reason not to allow the trade. He told me that they don't know what other Brokers we're doing. Yesterday the stock hit 1.52. Today, I am pulling my Fidelity account. I am also examining whether I have any legal remedies against Fidelity.I am so enraged at Fidelity. Jude Orji.

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  7. That's on the stop designation OTC Markets so yeah, Fidelity won't let you buy that. I don't know how they let you buy at 0.39 because it's my understanding they won't allow any purchases of these types of stocks.

    What's weird is Fidelity will show a chart for ADPTQ. Normally they don't show charts for the stocks they won't let you buy, like SIMA for example.

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    Replies
    1. actually that company filed for bankruptcy on Apr 19, 2017. Maybe that's why

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