Replies to post #25954 on DD Support Board and Research Team

[hedge_fun]

In these penny scams no one knows what the true P/E ratio is. All too frequently it is an exponential multiple of 100 but no one finds out until it is too late.

Then don't buy.....that's the point. Everyone is responsible for their own decision's.

Most stocks I see posted about on this board referred to as scams aren't about the books being cooked, and when disclosure about revenues is made, then the stock is called a scam, which is not accurate in my opinion. Over~valued perhaps, but not a scam.

That statement includes the implicit assumption that the markets are efficient which is true only if full disclosure is made available to all.

That statement is true whether full disclosure is made or not. The markets are always correcting. Prices go up and prices go down because the markets are all about PRICES.

That is the point. Everyone knew FB was priced at 100 times earnings.

I know, that's why I think it's hilarious that the media is suddenly talking about the price of FB shares. It's now under a microscope. They thought or suggested setting the IPO price was about leaving room for growth. The opening price was a few dollars higher and they thought those that set the price did a good job ORIGINALLY until reality set in.......then the whining began.

The SEC requires anyone trading in pennies to disclose they understand the risk BEFORE they ever buy the first share of a penny stock. If someone wants to risk their own capital on a stock based on a lack of info, an idea or concept, then they need to be held responsible for their own decisions, even when they buy at 100 times earnings with FULL DISCLOSURE. Now the market is correcting all by itself!

The markets aren't for the weak and they aren't always fair. The media over~hyped Facebook, the dot coms, the housing market, etc. People are far better off taking responsibility for their own investment decisions.

The unsuspecting sheep find out too late that in fact the books were cooked, unregistered shares were sold into the market wholesale, real assets were sold off to insiders at cut-rate prices, etc.

Is that not a risk in all markets?