Underperform calls on .PK and .OB
CAPS stocks with the suffix .PK or .OB are over-the-counter stocks. That means that they're not traded on one of the major exchanges like the NYSE, AMEX or Nasdaq. Instead, they're traded by brokers who negotiate with each other directly. Volumes can be thin and the companies aren't held to stringent reporting requirements by the SEC.
That means that the markets in these stocks aren't efficient. And because of this, it's next to impossible to get someone to buy your short of one of these stocks. Stocks on the pink sheets - .PK - usually get there because they're on their way to bankruptcy. There's not likely to be much interest in speculating in derivatives in this case.
In other words, in the real world, even if you think one of these stocks is going to decline in value, you can't make money off your opinion. Unfortunately, the same isn't true in CAPS. So when you see a CAPS player whose underperform picks on over-the-counter shares have netted them a majority of their score points, you are seeing someone who is gaming the CAPS system. That kind of stuff isn't useful for the purpose for which CAPS was created, and it's a waste of time and effort.
I'd like to see .PK and .OB banned from the CAPS system. When a stock goes pink, like NEWC did last month, all the CAPS picks on it should end automatically.