Hi TL,
You are completely correct. There are LOTS of scam companies in the market. But the presence of one situation does not eliminate the reality of the other. Many people do whine that their stock was the victim of NSS when it was really just a bad company. Look at USXP as a perfect example. The CEO screamed to the top of his lungs about the NSS and now the truth is coming out that he was raping the company the whole time. Nobody denies that scams exist.
But likewise, nobody should pass off all failed companies as scams. I have no idea what the actual percentages would be of scam failures versus NSS failures. I wouldn't even venture a guess. Just 5 years ago, the SEC categorically denied that NSS even existed. 3 years ago they acknowledged that it existed, but it was not an issue to be concerned about. Today, there are TV shows on Bloomberg about it.
Some claims of NSS might be "B.S." as you so eloquently put it, but to act like the situation does not exist is not a wise move.
You are definitely correct when you say that pennies are not for everyone. I look at the penny market as an online casino. It is a spin of the roulette wheel every time you buy a stock because a company can paint any picture that they think will entice investors into their game.
If you can't afford to lose the money, don't belly up to the table.
:)
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