Industry Source Consulting Inc (INSO)

[Gatsby]

for thus that "invest" instead of "trading" penny stocks:

Link: http://www.associatedcontent.com/article/153995/how_to_intelligently_trade_penny_stocks.html?cat=3

Some interesting passage:
The majority of the pennies and subbers trade don't trade on the higher exchanges, such as the NASDAQ or AMEX, but rather on the Pink Sheets or the Over the Counter Bulletin Board (OTCBB). This is due to them not meeting the minimum requirements of the higher exchanges, primarily because they are emerging, small companies in the development stage

Most importantly, never trade with money you can't afford to lose!

Learn this term and apply it every time you think you want to buy a certain stock: Due Diligence, or DD. This involves researching everything you can find on the stock, and only factual, verifiable information. Some of the resources are the company's own web site, official press releases (PRs), web sites such as Yahoo Financial, The Pink Sheets, InfoQuotes, etc. One thing that is NOT DD is getting info from the message boards, unless there is a verifiable source.

Message boards - these are very dangerous due to the anonymity of the people posting messages both for and against the stock. You have no idea who or what agenda the posters have.

The land of pennies is littered with the victims of scam artists, both involving the companies themselves and people not affiliated with the company. You see, penny stock companies trading on the Pink Sheets have almost no responsibilities to the "investors" or to the SEC. They don't have to report their financial figures nor the number of shares authorized and outstanding. This leads to unscrupulous people who set up a penny stock company very easily and then issue millions, and sometimes billions, of shares. They then pump themselves on the message boards and give the false impression the company is going to make millions of dollars on something. The price per share goes up, people notice and start buying more, and the buying frenzy starts. But, the company CEO and his henchmen start selling into the frenzy, making a fortune. Guess what? You lose.

DON'T get emotionally involved or married to the stock. The vast majority of penny stocks go out of existence and leave the "investors" with worthless stock.