DD Support Board and Research Team

[1manband]

Which is why I say 99% of penny stocks are scams

I think 99% is too high, as there are a number of legitimate public companies out there that happen to be penny stocks.

But, a lot depends on your definition of "penny stock". Certainly any stock that actually trades for a penny or less has no chance of success. They are either failed companies or were scams to begin with.

Any penny stock that is not an SEC registrant is almost certainly a scam or insider enrichment scheme. Legitimate companies register and report to the SEC. Those that aren't, don't. But that is not to say there are not scams that are SEC reporting, or that by virtue of being an SEC registrant it is automatically a worthy investment. Many non-scam penny stocks are still awful investments.

If you wanted to say almost all penny stocks that are actively discussed on I-Hub (or any other internet investment site) are scams, I would certainly agree with that. There are many reasons why that is the case, but one important one is that legitimate penny stocks are simply not very exciting. Building and growing a development-stage company is hard work and typically takes a long, long time. Management of these companies focus on the work, not the stock promotion. They don't pay promoters to pump the stock, or issue news every week, much less every day like a lot of scam penny stock promotions. There just isn't much to talk about outside of the quarterly financials or occasional release. That kind of schedule does not lend itself to internet discussion boards, and certainly not for shouts of "to the MOON!". If people are looking for actual legitimate penny stocks, EDGAR is a much better place to start looking than internet discussion boards.