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hedge_fun

06/26/12 8:35 AM

#369 RE: sunspotter #365

Real companies with real business models don't need to pay penny pimp newsletters (or IRPs) to promote their stock:



If they want to give a ROI to their shareholders, they might. I am working on a piece right now with a friend about a company that has real products with real revenues, and is trading less than 1 times earnings.

The shareholders are frustrated, and the point of the blog will be that the company should pay a dividend. It hardly ever trades and only increased the OS 1 time count in about 5 years, which is about 32MM. The last was increase was a few hundred thousand shares.

The stock has gone from near $1 to below 7 cents in the past year, with contracts in the $20MM plus range. The fundamentals are there, the interest isn't.

That was a poor generalization, imho. As is suggesting being OVERVALUED means the stock is a scam. In fact it's a very misleading statement.