I posted this post and one claimed it was false about Fsnr.
They took a part this post and posted a piece of this information which is false representation of the whole post previously posted.
I gave four parts that most all penny stocks fall into.
I asked the readers to see if Fsnr fit any of these 4 areas.
So here is the post in its whole:
Just a thought for new comers, and those who are waiting:
Four major factors make these securities penny stocks, riskier than blue chip stocks.
1. (Lack of Information Available to the Public).
The key to any successful investment strategy is acquiring enough tangible information to make informed decisions.
For micro-cap stocks, information is much more difficult to find.
Companies listed on the pink sheets (are not required to file with the Securities and Exchange Commission)
(SEC) and are thus not as publicly scrutinized or regulated as the stocks represented on the New York Stock Exchange and the Nasdaq.
Furthermore, much of the information available about micro-cap stocks (is not from credible sources).
One poster just used a part of this information.
Nobody said Fsnr did or didn't file.
So it was just something to watch for.
But as also stated, very limited information is stated about Fsnr and no knowledgable facts are produced about Fsnr and exactly what it is doing other than;
From the CEO of Fsnr:
As Freestone has previously mentioned, we have been focusing our efforts on Petrozene and the vertical integration of its supply chain.
This includes raising the capital to purchase the equipment used to make Petrozene so we can maintain control of its supply and cut costs. Simultaneously we are developing a team of distributors throughout the United States in order to effectively market and sell the product to companies that can benefit from its unique properties.
We want to make sure that the vertical integration of Petrozene and the development of this business within Freestone is done with extreme thoroughness to ensure its success.
In order to do this it has taken some time to conduct the proper due diligence, develop a detailed business plan that can be properly executed, and find the right capital partners that share our vision.
We are in the final stretch of completing our goals so that we can begin construction of the equipment.
( final stretch of meeting their goals?
Explain the meaning of final stretch)
(Explain their goals)
Freestone will issue press releases as we reach various milestones relating to the growth and development of this segment of the Company.
Well no press releases as of yet, months and still accumulating since the last blog.
Nothing on the growth or segment, as of yet.
The Freestone Team is working to make sure that all aspects relating the operations and production of Petrozene run seamlessly from day one; that includes everything from obtaining the necessary permits to the execution of certain contracts for the chemical and the byproducts that we will produce.
(Nothing on that either)?
2. No Minimum Standards
Stocks on the OTCBB and pink sheets do not have to fulfill minimum standard requirements to remain on the exchange.
Sometimes, this is why the stock is on one of these exchanges.
Once a company can no longer maintain its position on one of the major exchanges, the company moves to one of these smaller exchanges.
-Read this part:-
(While the OTCBB does require companies to file timely documents with the SEC),
(the pink sheets have no such requirement).
Minimum standards act as a safety cushion for some investors and as a benchmark for some companies.
3. Lack of History
Many of the companies considered to be micro-cap stocks are either newly formed or approaching bankruptcy.
(These companies will generally have poor track records or none at all).
(Ask yourself, what is Fsnr's track record)?
As you can imagine, this lack of historical information makes it difficult to determine a stock's potential.
(As stated by one poster, Fsnr does fit this next part for sure).
4. Liquidity
When stocks don't have much liquidity, two problems arise: first,
there is the possibility that you won't be able to sell the stock.
If there is a low level of liquidity, it may be hard to find a buyer for a particular stock, and you may be required to lower your price until it is considered attractive to another buyer.
Second, low liquidity levels provide opportunities for some traders to manipulate stock prices,
which is done in many different ways -
the easiest is to buy large amounts of stock, hype it up and then sell it after other investors find it attractive (also known as pump and dump).
Many poster have stated that smart traders have made money off Fsnr during the Encapsol run when it hit in the peak .90's. cent range.
Then one or two times after that in much lower cents range.
That could be considered pump and dump because no products were sold but shares.
Yet products was mentioned.
Penny-Baited Traps
Penny stocks have been a thorn in the side of the SEC for some time because lack of available information and poor liquidity make micro-cap stocks an easy target for (fraudsters). There are many scams used to separate investors from their money.
The most common include:
Biased Recommendations
Some micro-cap companies (pay individuals to recommend the company stock in different media), such as (newsletters), financial television and radio shows.
(One will have to speculate for their self if individuals on this board are paid for their aid in promoting for Fsnr)?
(Either by compensation of monies, shares, or anything of value):
You may receive spam email trying to persuade you to purchase particular stock. All emails, postings and recommendations of that kind should be taken with a grain of salt.
(Look to see if the issuers of the recommendations are being paid for their services as this is a giveaway of a bad investment).
Also,
make sure that any press releases aren't given falsely by people looking to influence the price of a stock.
(Ask yourself if any PRs from fsnr were false, from past to present)?
The Penny Stock Fallacy
Two common fallacies pertaining to penny stocks are that many of today's stocks were once penny stocks and that there is a positive correlation between the number of stocks a person owns and his or her returns.
Investors who have fallen into the trap of the first fallacy believe Wal-Mart, Microsoft and many other large companies were once penny stocks that have appreciated to high dollar values.
Many investors make this mistake because they are looking at the "adjusted stock price," which takes into account all stock splits.
By taking a look at both Microsoft and Wal-Mart, you can see that the respective prices on their first days of trading were $21 and $16.50, even though the prices adjusted for splits was about eight cents and one cent, respectively.
Rather than starting at a low market price,
these companies actually started high, continually rising until they needed to be split.
The second reason that many investors may be attracted to penny stocks is the notion that there is more room for appreciation and more opportunity to own more stock.
If a stock is at 10 cents and rises by five cents, you will have made a 50% return.
This, together with the fact that a $1,000 investment can buy 10,000 shares, convinces investors that micro-cap stocks are a rapid, surefire way to increase profits. Unfortunately, people tend to see only the upside of penny stocks, while forgetting about the downside.
A ten cent stock can just as easily go down by five cents and lose half its value.
Most often, these stocks do not succeed, and there is a high probability that you will lose your entire investment.
The Bottom Line
Sure, some companies on the OTCBB and pink sheets might be good quality, and many OTCBB companies are working extremely hard to make their way up to the more reputable Nasdaq and NYSE.
(This wasn't all negative);
(So don't let one or a few pick the only part of a post to try to prove their point, read all and form your own opinion).
However, there are good stock opportunities out there that aren't trading for pennies.
Penny stocks aren't a lost cause,
but they are very high-risk investments that aren't suitable for all investors.
If you can't resist the lure of micro caps,
make sure you do extensive research and understand what you are getting into.
Again, I stated, look to see for yourself if Fsnr falls into any of these categories.
All of this is open information that one can find on the web.
So for one to pick a fraction of the categories and call it false is a false statement by them.
Fsnr does fall into some of these categories.
(In my opinion).
But use your own judgement.
Best to all.
