Due Dilligence, as re-defined for Penny Stocks:
I was thinking about it last night, I decided that basic due dilligence for most pink sheets and pennies might consist of investigating the following checklist:
1) Does the company have a working phone number?
2) Does the company have a verifiable address and place of business one could visit?
3) Is the company listed in any state documents and public business records, or is it merely a figment of the CEO's furtive imagination?
4) What is the outstanding share count, and assigned share count? (If the stock in question is a Nevada based pink, the AS is almost more important, as that could become the OS overnight..lol)
5) Is the transfer agent gagged?
6) Does the company have toxic convertibles and other evidence of terminal debt?
7) Does the company have a history of dilution and reverse splits?
8) Does the CEO have a prison record and/or a rap sheet?
9) Has the CEO ever changed his name so that he can't be tied to previous scams?
10) Are there any signs the stock could be imminently halted by the SEC?
_______________________________________________________
If you take anything I say as advice, you're crazier than I am.