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?