From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Subject: Re: Exp. with Hibbard Brown
Organization: AT&T Bell Laboratories,  Columbus, Ohio
Distribution: usa
Date: Sun, 22 Nov 1992 19:40:34 GMT

In article <38731@twerp.ease.arco.com> cahuja@twerp.ease.arco.com (Chander Ahuja) writes:
>Does anyone have experience using Hibbard Brown brokerage firm - have they
>provided good advice, kept you upto date on happenings etc...am looking
>to get involved with them , thought i'd see if anyone had any priors...


Advice?  Avoid them at all costs.   If they call hang up.  If they
want to talk, hang up.

If they tell you they have only one purpose in life, and that is to
make you rich, that they could be out having fun, playing golf,
skiing, etc.  but they'd rather let you in on a once in a lifetime
opportunity that no one else in the entire world knows about but
you, and if you respond right now (tomorrow may be too late), hang
up!

If I haven't stated my advice too clearly. and you still have a
question, please ask.

Hibbard Brown pushes low capitalized stocks, often closely held,
often with a single market maker.  They pretty much set the price
on these issues, and without many market makers you have no idea
whether the price is fair or not.  They have enormous  spreads
between bid and asked prices.  And they often charge their own
markup/down.    So they make money on the trade as broker and also
as market maker.

========


I have an overall general recommendation on brokers:

 -- If they call you, you could ask for lots of literature about the
company and if they are pushing an issue ask for lots and lots of
information about the issue.

 -- Never, N E V E R ,  buy stock in response to an unsolicited
phone call.  Most of the time that's enough to get them off your
back.  If they are legitimate they might follow up, and if they are
crooks they might follow up, but at least you will have time to read
what they send you.

 -- When you see a deal that is a once in a lifetime deal and it
will be too late tomorrow, then let someone else get rich.  Run.
Contrary to what you may have read, there usually is a tomorrow.

 -- If you see a large spread between bid and asked price, stay
away.   By enormous, I mean     1  and 1 3/4    or 1/2 and 1 1/4.

On the other hand, a spread such as 62 1/4 - 63, while large, is
a much smaller percent.


 -- If the stovck sells at under $5 be very very suspicious.

 -- Very Important:  Get from the broker the Names and Addresses of
Every market maker for that stock.  If less than 4-5 market makers,
then run.  If less than three market makers run very fast.

    Do not accept a general statement "There are half a dozen or more
market makers" or "There are lots of market makers, but it will take
me a while to get their names" or "I think Merrill Lynch and
Prusdential both are market makers"  --- Get the exact names and
addresses.   A legitimate broker will have no trouble at all getting
them.  Then contact one or two and verify they do make a market in
that stock.

Hibbard Brown in particular deals in penny stocks, makes their own
markets, and are often the only market maker.  They have no one to
say independently what the stock's value is.

(In today's lingo, a penny stock is one selling at under $5.00)

So if they call, don't make excuses.  Do not think you have to be
nice to someone calling you to take your money.  Just hang up.
You could just say no, and then hang up.  But if you don't hang up
soon, remember, they are trained to take your money.
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus