InvestorsHub Logo
Followers 6
Posts 305
Boards Moderated 0
Alias Born 03/29/2014

Re: moneydreamer post# 12663

Thursday, 05/25/2017 10:55:25 AM

Thursday, May 25, 2017 10:55:25 AM

Post# of 12930
I've seen this before elsewhere, what they do is they give shares away to a group of people to trade them back and fourth, that way they keep up some volume. In the old pre-90's market, volume and p/r's worked because in the 40's and up, every once in a while a penny company's stock would hit the roof and create a bunch of newly rich investors. Add in that anyone could day trade and you had lots of volume to go around. Today's market, however, is much different. Only margin accounts can day trade and they stick to the upper market stocks. Leaving fewer crumbs for the pennies and subs.

Naturally the penny and sub penny markets are rife with scams. One simple way to tell a scam stock is to check to see if the float keeps expanding. Another way is to go back in the records to see if the company has hopscotched from product and promise to product and promise without ever generating any revenue from them. Reverse splits are another big red flag, which say keep your money in your pocket and move along quickly.