Going Through 1,500 OTC Stocks

Throughout 2016 I’ve been going through a list of over-the-counter stocks I screened for at the beginning of the year. I started with an Excel spreadsheet of all OTC stocks listed in America (9,855) and then narrowed it down via the following criteria:

  1. Only these exchanges: OTCQX, OTCQB, Pink Current (only wanted companies that were up-to-date with their filings)
  2. Companies based in first world countries
  3. Removed banks, biotech, pharma, minerals, and oil and gas
  4. Removed stocks selling for less than $0.05 and companies larger than $500M market cap

This left me with a list of 1,437 stocks that had a total market cap of just $80.6 billion. This is the third time I’ve gone through a similar list of OTC stocks. The first time was 2011 and the second was 2014. Not surprisingly, the 2016 trip through the list has been by far the least fruitful. The first time I went through in 2011 I found quite a few profitable net-nets, and even in 2014 I found a couple. While I didn’t uncover any interesting cigar butt-type investments this year, I did discover a few high quality companies.
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