NuGene International Inc (NUGN)

[softcare]

I would add this to the list:

1. Investigate and look closely at the founding events fort the company. A pump and dump usually has telltale signs that there is going to be some stock manipulation. This one had all sorts of signals all over it from the start.

Several contributors on seekingalpha did the heavy lifting early on:

http://seekingalpha.com/article/3226366-nugene-international-blatant-hardmailer-promotion-with-99-percent-downside

and

http://seekingalpha.com/article/3400215-nugene-international-why-this-promoted-122-million-company-could-drop-70-percent

BTW it has now surpassed the 70% decline prediction.

2. Check out the science with some independent expert in the field. They may point out that it is complete crappola. They are not always right (maybe only 98% of the time) but even if wrong they can give you good questions to ask.

The guys pushing NuGene didn't have the background scientifically which was easy to find out.

3. Common gut sense. If Kathy Ireland designed a complex biology product, as they advertise, then what does that tell you? The follow on question is - what was wrong with the other near identical product she invented the year before then dumped when she got a better licensing deal?