MediaG3 (MDGC)

[Cassandra]

Getting a higher return may entail taking a higher risk, so high return often equates to high risk. But high risk OFTEN does NOT equate to high return. Do you see the distinction?

There are MANY stocks where the risk FAR outweighs the realistic return. The vast majority of PK stocks fall into this category. If high risk meant high reward as you postulate, then penny stocks would have the highest average returns in the stock market.

In pinkyland, the risk is usually a loss of 100% but stock promoters are always trying to suggest potential/probable gains of many hundreds of percent. This is usually done as part of a pump-and-dump scam. Because most PK stocks are not transparent and have questionable financial statements, some investors end up believing unscrupulous promoters who appeal to greed.

Temporary gains from stock promotions almost never last and leave those who bought into the promotion under water when its over.

Of all the people investing in "high risk" penny stocks, most are facing or have ended up taking losses. The high risk of penny stocks does not equate to a generally high return, especially for those who hold them long. Buying penny stocks is more akin to gambling than investing.

MediaG3's 3.5 years of false and misleading PRs, financials, website claims, DTC chill, no FCC license, etc. make it a very high risk for a complete loss and give it an extremely low likelihood of a high return.

Highly suggested reading:

http://blogs.marketwatch.com/cody/2011/10/03/simple-rule-dont-ever-buy-a-penny-stock/

http://alephblog.com/2011/10/02/on-penny-stocks/

http://ezinearticles.com/?High-Risk-=-High-Return---Truth-Or-Fallacy?&id=4842805

http://www.ft.com/cms/s/0/8510b958-9aad-11e1-9c98-00144feabdc0.html#axzz2KYZ0HAtS

If you didn't read it before: http://www.investorsfriend.com/risk_and_reward.htm

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