Replies to post #11722 on AER Energy Resources, Inc (AERN)

[dingleberry11]

Thanks a lot Rob.

Ur telling me/all of us the basic rules of the penny world.

Which deep down we all know .

when i found this ,i was looking for a gem,and thought i found one.

We know their pumping oil,is it enough to pick this play up,we'll know soon enough.

Thanks again

[clousclavos]

"99% of penny stocks are scams" is not even close to a true statement. Yes there are scam/shell penny stocks but the vast majority of micro/small cap stock plays are simply companies attempting to get started with very little capital. Just because these companies don't pan out does not make them a "scam". It does however usually illustrate poor management, poor concept, business model, etc. Until a micro/small cap reports information that can help to predict an accurate valuation these stocks are always up or down based strictly on speculation. The scam is that any of these stocks are trading high on limited/no information at all. So if anyone is "scamming" it is def the group of investors/traders that pump these to begin with, because they know that the PPS isn't based on anything. They are simply looking for a short play at the expense of less knowledgeable investors/traders. The trick is to find something that could actually jump, merge, or be aquired and get into that position at a low cost. But most of those positions will never start low.