Great points, davidd. And these scamsters know their market very well. They understand that many people are susceptible to get rich quick schemes and or have the penchant for gambling. All we need to do is take a look at these barely capitalized penny stocks and their respective message boards and see how many posts they get a day compared to any good quality, highly profitable small, mid, or mega cap companies, which for the most part get few posts in a month.
It's an easy game, issue or invert a penny stock with minimal float. Pump it. Dump it. And make a nice piece of change without ever running an actual active business for the long term.
If one has the urge to buy into a penny stock, first check the many different message boards. Check to see the massive amounts of happy talk. The massive amounts of p.r. companies like these release. Back test the people who are the most prolific and see how their past performance has been with the previous penny stocks they have been so happy about in the past.
And look over the companies balance sheet. Read the notes in the 10-K and 10-Q's.
