Good to be cautious and do your homework
before viewing a penny stock as a long-term
investment...
"Penny stock fraud is one of the most widespread and destructive forms of financial crime, collectively costing investors billions of dollars each year in North America alone," said David Marchant, publisher of the Conference's organizer, OffshoreAlert newsletter, which specializes in exposing financial crime."
"Although penny stock schemes are frequently successful, they seldom are subtle. Unlike the elaborate accounting schemes that accompany massive corporate frauds, like those that unfolded at Enron, WorldCom and other major companies of that ilk, penny stock frauds usually rely on the garden variety “pump and dump” scheme. The promoters gain control of the company, often through a reverse-merger with a shell company. They then spread false and misleading information about the company to spark interest in the company, generate volume for the stock, and pump up prices. Once stock prices rise, the promoters dump their shares and stock prices slide back toward oblivion. The game takes on several variations, but the basic framework seldom differs."
2005 Venture Research Institute
btw...if the reverse split occurs before AERO
shows any signs of it's ability to increase sales
to any significant level...LOOK OUT BELOW!
In pennyland, most things are not as they "appear".
Know when to buy...know when to sell.
