First Bitcoin Capital Corp (BITCF)

[chessmaster315]

Obviously, Chicken Little and his friends are out telling everyone
"The Sky is falling" on Penny Stocks.

According to the Author, the ENTIRE class of penny stocks is some sort of a ponzi scheme and she is "protecting us" from certain failure.

The trouble with that position is that she often guarntees the worst case senario, by getting people to "panic sell" their penny stocks.

Panic selling is almost never good. Instead, patience is often rewarded on penny stocks. There are many, many successful "penny" stocks, that have made people millionaires.
ONE example, is a company that made a device for cleaning teeth.
I lived in an area of Fort Collins, Colorado, where there were many "WaterPick" millionaires. Waterpick had a humble "penny" stock beginning.
Another more relevent "penny" stock, is FNMA or FMCC. These pennies, have gained approximately 1100% in 2013, (more in early 2014) even tho they have "haters" in high places! The president of the United States even said fannie should be "wound down"!! It is unclear what experience the president has in evaluting companies worth, and why he should use his official position to do the same. Several politicians have said fannie shares are "worthless". Time will tell, but those chicken littles, have been left behind.

Some very astute investors recognized the LARGEST dividend to ever be paid in the US was paid by a penny stock, FNMA, $66 billion dollars. Unfortunately, that 66 billion went to the treasury, and there are 17 lawsuits against the government for "taking" fannie shareholder dividends:
http://www.restorefanniemae.us/

These unprovoked ATTACKS on the entire class of penny stocks are hurting seniors much more than they help. By pushing the "panic button" many seniors sell for a loss, while at least some of these pennies will again succeed on their own. Contrary to some poeple's opinion penny stocks are not a "cigarette" that should be put out. They are a necesssary way for "baby companies" to raise capital in early stages.
I do not deny that many/most of these penny stocks will fail. They are very high risk, and BITCF is probably one of the most extreme of risks. You should not invest any money into penny stocks that you can not afford to lose.

Some pennies become big boards, and some big boards are delisted and become pennies. The division between "pennies" and Big boards is not as clear as the author contends, and there is no guarntee on big board stocks either, and, we certainly have found out that being listed NYSE does not ensure these companies are immune from corruption, like the author suggests.