Friday, March 04, 2011

Pink Sheet Stocks Not Just Microcaps, Many Quality Stocks

Many investors are under the misconception that pink sheet stocks are microcap stocks. But this is not correct. Pink Sheet stocks include some of the highest quality stocks in the world, and often it's the only way to invest in many top quality foreign stocks. Many European companies have decided to drop their listings on the New York Stock Exchange, in order to avoid listing fees and onerous reporting requirements, and now trade over-the-counter on the Pink Sheets. According to, there are over 40 Pink Sheet stocks with market caps over $8 billion.

One example is Bayer (BAYRY.PK), the famous German-based manufacturer of Bayer aspirin along with numerous other health care, crop science, and material science products. Bayer formerly traded on the NYSE but now trades on the Pinks. The stock has a price to earnings ratio of 20.5, trades at 13 times forward earnings, and has a price earnings growth ratio of 2.15.

Fiat S.p.A. (FIATY.PK), the Italian automobile and truck manufacturer is another company on the Pink Sheets. The stock has a PE of 15, a forward PE of 13, and and a very favorable PEG ratio of 0.74.

Volkswagen AG (VLKAY.PK) is the German car manufacturer which has the Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles brands. The stock has a P/E ratio of 11.6, a forward PE of 8, and a PEG of 0.19.

Roche Holding Ltd. (RHHBY.PK), the Swiss pharmaceutical company, trades at 3.5 times forward earnings, and has a PEG ratio of 0.55.

Rolls Royce Group plc (RYCEY.PK), the manufacturer of aircraft engines, has a PE ratio of 21, a forward PE of 18, and a PEG of 1.69.

Please note, the stock symbols for these stocks use the .PK extension for certain sites such as Yahoo Finance. To see the recently updated list of top Pink Sheet stocks, which can be download, updated, and sorted, go to

Disclosure: Author did not own any of the above at the time the article was written.


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