H3 Enterprises Inc (HTRE)

[flsunchaser]

78% OF ALL PINK SHEET STOCKS HAVE LYING CEOS

Thanks MorningLightMountain, That link was so good I reproduced it here. Because, I thought how apropos this is.
Thank goodness H3 is focused like a laser. Hmmmmmm.


02 Sep 2007 Talkgold.com’s Online Money Making Blog

78% of all Pink Sheet Penny Stocks have Lying Ceos and Officers

A recent collection of data from the last 18 months on 100 random Pink Sheet Penny stocks showed within those 18 months the officers of approximately 78% of these companies said something that was not entirely true in order to create optimism for their stocks.

Out of the 100 random Pink sheets that were tracked, 52% of them had price spikes of 50% or more at one point in those 18 months. 68% of these stocks fell back to below pre-spike levels within those 18 months, while only 7% of these stocks stayed above their 50% increase in price for longer than 2 months.

What this shows us is that the Pink sheet penny stock market is filled with manipulation, hearsay, and a pump and dump mentality. Momentum is the primary driver of these stocks rather then fundamentals, and the words of CEO’s are worth just as much as those of the pump and dumpers themselves.

We have seen stocks go from below a penny, up to $2 and back down to 1 cent, within a 5 month period. The primary driver of these huge price swings were the company officers putting out press releases that fudged numbers, created panic buying, and then with the pump and dumpers continuing to drive the price up, until they all sold out, the prices fell back down to reality.

Lesson learned from all this is that the Pink Sheet markets are much closer to gambling than investing, and that even the SEC can not protect hundreds of investors from being conned by fraudulent practices by company officers. Unless you have money to gamble with, we recommend you stick with the big board stocks, or at least the over the counter pennies.

Posted on Sunday, September 2nd, 2007 at 10:01 am under Penny Stocks, Investing .

http://www.talkgold.com/money_blog/?p=27