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Wednesday, April 07, 2010 11:28:05 AM
What exactly would it take in order "not to believe them"?
Exactly what have they provided that can be 100% verified through independent 3rd parties?
That's called the sniff test. The ability to verify claims through independent 3rd parties. If you can not do this then you should be more than just a little skeptical.
Example:
Create a list of the top 5-10 most important factors for this "buyout" to be real.
Then find independent verification for these items, or as many as you can. Feel free to ask others for assistance. Perhaps a group of investors here would be willing to search with you in order to ensure the data is not corrupted by "evil bashers"?
See if you can actually verify any of their claims from any source other than the company itself or those paid to promote it. In other words, you can not utilize any paid promotional material as "verification".
Then and only then would you be able to determine if this is for real or just a pie in the sky, share selling dumpapalooza. Believe it or not, most shams in the penny stock world actually cater to the mentality of the average penny investor. That catering relies on a few main factors.
(1). The desire of the investor to make huge returns in a very short period of time.
(2). The likelihood that the investor will make a decision without doing the proper DD.
(3). The belief that the investor will use emotion in place of good judgment.
(4). The hope that the desire to make a ton of money will keep the investor in the stock well beyond that of a logical investor who uses disciplined trading strategies.
If a company can accomplish these 4 things then they have a successful pump and dump, share selling scheme. So, in order to ensure you do not fall victim to such a scheme you have to do make sure you do not fall into any of these 4 categories.
Buying in and waiting to see if you were snookered is not a sound investment strategy. It actually requires you to be scammed before admitting it.
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