Some things to remember regarding Pump and Dumps as well as Penny Stocks:
1. Watch out for the touting services including PennyStockGeeks.
2. Watch out for any message board content, do your own DD. And remember, there are no paid bashers!
3. Beware of the phrases: "naked short selling" which doesn't occur in the penny stock market or MM manipulation.
4. Watch out for the "Buy now or you'll miss the boat" messages.
5. Watch out for claims of breakthroughs - penny stocks are rarely leaders in anything but stealing money. Fairly new companies are highly suspect.
6. Watch out for price and volume upswings on no news. If there has been a pump and dump in the past (which AUMY has been), this should really set off signals.
7. No financials or suspicious ones? A company claiming it's worth $100 million or getting $20 million in funding that has but a few thousand dollars in the bank or in debt? Really?
8. Cancellation of shares, buyback programs, reverse splits and issuing new shares - beware, beware, beware!
9. Announcements with caveats should be suspicious.
10. Can't get anyone to answer phones or emails?
11. Predictions of astronomical gains?
12. When the praisers stop praising!
13. When the big deal falls through.
14. When issued and outstanding shares rise dramatically!
15. And if you think the price of the share is down because of shorting, because of bashing, if you think there are more buyers than sellers or more sellers than buyers - no such thing as more buys than sells and no such thing as more sells than buys. It takes two!
16. If you think penny stocks can be charted - forget it. Charting is a big gamble even with the big boys.
Once the promo is over, it's over and the stock dies.
I got caught on this one and lost some money, thankfully only about $150 dollars - but that's four trips to the gas station. Beware.
