Sue.....If you are absolutely intent on buying penny stocks(and I would strongly suggest against it), but if you must, there are three things(off the top of my head)which absolutely must be known. First off, Are they a Canadian company? If so...run!....Are they incorporated in Nevada? If so....RUN FASTER!.....Who are some of the people recommending the stock? You will see a certain group of people appear again and again(you can tell just by looking at their alias page), and if they are always touting the same story, even though they have yet to be right....just back out slowly and maybe they won't notice you. These people initially are looking for thinly traded stocks. Check to see if the volume has been thin, however, there was a two to three week period about a month to six weeks ago when the volume suddenly spiked. This is a signal someone loaded up before beginning the tout.
I think that's enough to get you started. There are other lessons, but for a basic understanding, those three rules will keep you away from a good deal of the scams out there. JMO, of course.
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