NAKED SHORTING...MUST READ!!

[Stock Lobster]

Sirius, I'd say to follow your instinct. Don't buy a .0001 with billions of shares outstanding unless you consider your investment a disposable lottery ticket that you wouldn't mind losing. In that case, why not give it to the homeless?

The problem with a .0001 is that although the potential is large, the odds are not in your favor, and the risks are various. Either the stock could lose it's bid, and you could be trapped without exit for months. Or, the company could decide to do a reverse split in order to continue their goal of funding through massive dilution. Worse yet, you could end up being stuck in a stock with no bid, and additionally be forced to endure a Reverse Split with no choice of escape. This is a common insult to injury experience for too many penny players, as reverse splits are dilution's evil twin.

re your other point, I personally don't understand the logic of claiming a large naked short position on a .0001 stock from a company that is printing millions of shares a week. It's possible I'm missing something, however, and I'm willing to be educated.

If you want to take a chance on a sub-penny stock, my recommendation is to find one in the .001-.002 range. They are already out of the danger zone of the triple zeros, and there is actually a greater chance of a .002 running to .02c or better, than of a .0001 ever making it to .001. You're right that the right choice can make you a 10x profit, but the trick is not to run out of money before you find that winner.

You can increase the odds of NOT getting slaughtered by checking the boards carefully for keyword "dilution" and the ticker of whatever stock you're considering buying. Dilution is the single most important thing we have to worry about in the pennies. It will kill any run, and drop the PPS 1000% in a few weeks. Fundamentals and Due Dillligence mean nothing in the face of an onslaught of company dilution, imo.

That is merely my observation, and one you are welcome to disagree with.

I wish you the best of luck. Always consider many opinions before making any decision, and then check them against your gut. Sounds like your instincts are good.