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Penny Stocks?
- Thread starter crushtime
- Start date
just say no bro. penny stocks might seem like a great thing.. only way to make money on them is to get in and have some boiler room pump and dumpers run the thing up for you.
they can get halted and you lose everything at any time. or they can still drop 50% or 80% more.. even if the price is .001, it can still drop to .0001 lol. it might seem like a great deal but it isn't. stocks listed on bulletin board or pink sheets don't meet certain criteria, mostly the fact that they do not file quarterly reports on time or at all. and many don't even operate any business, they are just shell companies.
they can get halted and you lose everything at any time. or they can still drop 50% or 80% more.. even if the price is .001, it can still drop to .0001 lol. it might seem like a great deal but it isn't. stocks listed on bulletin board or pink sheets don't meet certain criteria, mostly the fact that they do not file quarterly reports on time or at all. and many don't even operate any business, they are just shell companies.
crushtime
New member
What do you mean?
What broker service did I use? Scottrade
Research? I used scottrade's services to narrow down what specifics I was looking for.
Once I found a handful of companies I was interested in I visited websites and checked records filed. (if they had no records, I simply crossed them off.)
Then I added my final group of companies to a watchlist...kept track of them for several weeks.
Invested into the 2 companies in what I thought were the best sectors.
Watched prices and dumped them when I felt they peaked.
What broker service did I use? Scottrade
Research? I used scottrade's services to narrow down what specifics I was looking for.
Once I found a handful of companies I was interested in I visited websites and checked records filed. (if they had no records, I simply crossed them off.)
Then I added my final group of companies to a watchlist...kept track of them for several weeks.
Invested into the 2 companies in what I thought were the best sectors.
Watched prices and dumped them when I felt they peaked.
penny stocks scare me, just to up and down.
there are some legitimate companies that trade over the counter which trade there cause of a very tiny float and/or they do not have enough shareholders.. but that is a very small percentage (mostly tiny thrift banks or S&L's) heck some of them i've even seen pay out dividends.
then you have companies that used to be big that ran into trouble and were de-listed. (this is very common)
and then you have companies that filed to go public but did not meet criteria to trade on the bigger exchanges or had very little or no demand.
and then you have foreign companies (mostly from china) that are pretty much scams but because they are based in china which is growing quickly boiler rooms find suckers to sell worthless shares too
rent the movie boiler room to understand what the bulletin board and pink sheets are all about. these are worthless companies that get pumped and dumped into. basically the boiler rooms sell their worthless shares to people which are hype. back in the old days there used to be boiler rooms all over the internet that would put out stocks and people would buy them, and in the end usually get holding the bag. the officers will own a lot of shares, and they will dilute the hell out of the stock and use that money to continue operations in a company that makes nothing so that they can continue paying themselves a salary and keep their jobs.
dilution doesn't just happen here though, they happen on a daily basis in many growth stocks listed on the main exchanges. however i've seen plenty of examples of bulletin board stocks doubling their shares out overnight which cripples existing shareholders and leaves them holding the bag. they pass the vote cause the officers have the majority of the shares so other shareholders have no vote.
then you have companies that used to be big that ran into trouble and were de-listed. (this is very common)
and then you have companies that filed to go public but did not meet criteria to trade on the bigger exchanges or had very little or no demand.
and then you have foreign companies (mostly from china) that are pretty much scams but because they are based in china which is growing quickly boiler rooms find suckers to sell worthless shares too
rent the movie boiler room to understand what the bulletin board and pink sheets are all about. these are worthless companies that get pumped and dumped into. basically the boiler rooms sell their worthless shares to people which are hype. back in the old days there used to be boiler rooms all over the internet that would put out stocks and people would buy them, and in the end usually get holding the bag. the officers will own a lot of shares, and they will dilute the hell out of the stock and use that money to continue operations in a company that makes nothing so that they can continue paying themselves a salary and keep their jobs.
dilution doesn't just happen here though, they happen on a daily basis in many growth stocks listed on the main exchanges. however i've seen plenty of examples of bulletin board stocks doubling their shares out overnight which cripples existing shareholders and leaves them holding the bag. they pass the vote cause the officers have the majority of the shares so other shareholders have no vote.
sounds like facebook!
dr0832
New member
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