This board is for all those that have taken a whooping in the market and need a place to pick themselves up, dust themselves off and get back into the game.
There is only one rule here and that is respect for your fellow posters. Every opinion will be respected, both positive and negative on any given topic or stock. If there is one thing I've learned it's that things are not what they seem and following the HERD will get you slaughtered. Lock in a base hit and forget those PUMPS about hitting a home run. Take your initial investment out at the earliest moment and play with the house's money. Hopefully this board can be an unbiased place providing the wealth of experience and knowledge that is available from the IHUB community and its members. The goal at the end of the day is to NOT get KILLED by MrMarket
The truth according to the crustacean:
"99% of pinksheets are probably scams or borderline scams. At the very least, they are being diluted into oblivion in order to provide financing for one of the CEO's other hobbies...lol!
The rest are riddled with toxic financing and deadly convertibles waiting to be triggered like landmines.
There is no regulation or oversight of the pinksheet market, nor any requirement to file or provide any transparency to investors.
Pinksheet shareholders are asked to go on 'faith' that the company is who and what they say they are. But 'faith' in pennies can be a financial death wish.
If the pinksheet is incorporated in Nevada, they can dilute at will, with extreme prejudice. I would say to beware of any company with a gagged transfer agent. If they are hiding their OS, it's because they know shareholders wouldn't like what they'd find out. imho. Also be aware that dilution generally is eventually followed by it's dreaded sibling, the brutal reverse split.
OTCBBs may have many of the same problems, but at least are required to file 10ks with the SEC. Financials are not a gift to be doled out every leap year on a whim, but a requirement. Failure to file will bring about an "e" on their ticker and a delisting to the pinksheets. Therefore, OTCBBs are a little better, but there still are no guarantees. Many have the same problems with debt and deception. FHAL/CSHD was an OTCBB, fwiw.
In the penny market, it is safer to assume the stock is a scam, and let them convince you otherwise.
The veteran traders around here have learned to ignore the story, and most trade only the mometum and the volume. Even scams can make you money, but only if you trade them.
Maybe one in 1000 penny stocks has the actual potential to become a genuine company. I won't rule it out. But while you're waiting, trade the rest and exit your positions when the PPS starts to fall below your pre-determined level. You'll sleep better at night.
Post by Stock Lobster
Spotting a potentially bad investment or dare I say "SCAM", red flags to watch for:
Safety tips for penny players:
Some pearls from lowman:
lowman's Money 101 board: