[PhillyFlyers]

So I am at the Halloween party last night and my boy says to me "yo, invest in this stock".

I look the stock up this morning and it's a fukkin penny stock worth around $1.50 a share right now.

I know absolutely nothing about penny stocks. My boy told me to put a decent amount of money into it and that it's going to skyrocket. Don't get the chance to get into deep discussion with him about it and didn't find out more.

Looks like it's a small company but decently healthy.

Reluctant to give out name of the company until I'm sure I want to put money into it or not.

Any help is greatly appreciated.

[Russian Rocket]

a well known scam...hype up penny stocks to someone else and than dump everything you have for a nice profit
if he's talking about it to you right now, more than likely you already missed the push up in the stock price

what happens is you get the news about the stock, next morning you login and see that the price went up say 20% the last two days...you go "Ohh shit I don't wanna miss the next leg up" ...you jump on it and the next day or two you lose your shirt.

this scam with a penny stocks has been around for years...why? because it doesn't take a lot to drive the price up for such a cheap stock

in your case though this is not a penny stock - a penny stock is literally would cost you say 1-2 or sometimes even less cents to buy.

with the price staying under $2 I would still be careful though



if I was u I would stay the fukk away from it

[PhillyFlyers]

a well known scam...hype up penny stocks to someone else and than dump everything you have for a nice profit
if he's talking about it to you right now, more than likely you already missed the push up in the stock price

what happens is you get the news about the stock, next morning you login and see that the the price went up say 20% the last two days...you go "Ohh shit I don't wanna miss the next leg up" ...you jump on it and the next day or two you lose your shirt.

this scam with a penny stocks has been around for years...why? because it doesn't take a lot to drive the price up for such a cheap stock



stay the fukk away from it

Wow.

So basically, penny stocks are a fukkin scam?

[chilidog]

i make quite a bit of money from penny stocks, but russian is pretty much correct. once you've heard about it, it's pretty much too late. there are exceptions, but you'll lose a lot of money trying to find these exceptions.

the way to make good money with it is to ride it both ways. stock spam is all over the place, and the moment a new stock is pumped (especially if the tout company was paid 5 figures to promote it), buy it - it's going to go up. sell it when you're ready, just realize you can't get greedy, because it will plummet. once you get comfortable reading charts and you think it's about to drop, short the heck out of it. make $ both ways. i enjoy it, and it's a solid income stream for me.

[PhillyFlyers]

Thanks for the replies, guys.

Listen, Rocket and Chili, since you guys seem to know about this stuff, if I PM you both the name of the company, is there anyway you can look into it and let me know if it's a good investment or not?

[chilidog]

Wow.

So basically, penny stocks are a fukkin scam?

Not at all. Companies like True Religion and Monster Beverage started out as penny stocks. A penny stock is simply a stock that is traded below $5. A few years ago, BkofAma was even classified as a penny stock.

[chilidog]

Thanks for the replies, guys.

Listen, Rocket and Chili, since you guys seem to know about this stuff, if I PM you both the name of the company, is there anyway you can look into it and let me know if it's a good investment or not?

sure or you can just put the symbol here

[Russian Rocket]

Wow.

So basically, penny stocks are a fukkin scam?

no not all of them, most of them are just companies who went belly up...some companies for example go through bankruptcy proceedings and still continue to trade on Pink slips or Over the counter exchanges...they would have .otc .pk after the actual stock symbol.

but scammers do take advantage of such a low price on those stocks, so u gotta be very careful where you put your money at

in your case this company might have a good product coming up in the future and the price might very well skyrocket, but you need to find out the actual details on why this might happen.

[PhillyFlyers]

sure or you can just the symbol here

Reluctant to do that Chili, simply because if I post the name of the company here, what happens if all of SBR gets on it, the stock goes up and I'm left holding the bag while trying to make up my mind?

[Russian Rocket]

Reluctant to do that Chili, simply because if I post the name of the company here, what happens if all of SBR gets on it, the stock goes up and I'm left holding the bag while trying to make up my mind?

lol

you can PM the symbol to us

[PhillyFlyers]

lol

you can PM the symbol to us

OK Rocket I will do that, then.

[Russian Rocket]

also tell us what exactly did he tell u? why he thinks the price would go up?

[PhillyFlyers]

also tell us what exactly did he tell u? why he thinks the price would go up?

OK sending now.

[robzilla]

.....

[itchypickle]

Yes Penny stocks (anything on the pink and grey lists) are just like 50 game parlays. Don't waste your money.

[PhillyFlyers]

Yes Penny stocks (anything on the pink and grey lists) are just like 50 game parlays. Don't waste your money.

What?!

Equivalent to 50 game parlays?!

Why the fukk does anyone invest in them then?

[chilidog]

The company you sent me lost money in 2011 and 2012. The most important thing I'll tell you this is though:

That stock is currently being promoted by touts/stock promoters. Just look at the charts for today. Don't touch this stock.

[PhillyFlyers]

The company you sent me lost money in 2011 and 2012. The most important thing I'll tell you this is though:

That stock is currently being promoted by touts/stock promoters. Just look at the charts for today. Don't touch this stock.

A sincere thanks to you and Rocket Chili. It's greatly appreciated.

Rocket already told me to stay the fukk away from it and I already called my friend up and bitched him out for being a fukkin moron. Told me he's already invested for 30k.

He's going to lose it the fukkin idiot.

[chilidog]

I love playing on promoted stocks, but only when the promotion has just begun. With this one, it's been promoted for weeks now, so there's no telling when it's going to stop. You have no idea when the people behind it are going to unload their stock and then it's going to drop like crazy and quite a few investors will take a loss. I saw a big drop already today and it recovered some. Hopefully your friend put in a stop-loss. He's taking a huge risk on what's going to happen. Good luck to him.

A sincere thanks to you and Rocket Chili. It's greatly appreciated.

Rocket already told me to stay the fukk away from it and I already called my friend up and bitched him out for being a fukkin moron. Told me he's already invested for 30k.

He's going to lose it the fukkin idiot.

[itchypickle]

What?!

Equivalent to 50 game parlays?!

Why the fukk does anyone invest in them then?

Dreamers and insiders toying with the financials on them are the bulk of that market. The reason most are on these sheets is because they have fallen from grace as companies already or longshots....and the basic math of any transaction still holds true....if you grab them at the bottom with your initial basis and then they do happen to explode to a multiple of 1000 or whatever...who is actually going to fulfill the sell order on the other end when they do? Just food for thought.

[PhillyFlyers]

Dreamers and insiders toying with the financials on them are the bulk of that market. The reason most are on these sheets is because they have fallen from grace as companies already or longshots....and the basic math of any transaction still holds true....if you grab them at the bottom with your initial basis and then they do happen to explode to a multiple of 1000 or whatever...who is actually going to fulfill the sell order on the other end when they do? Just food for thought.

Thanks, pal.

[DiggityDaggityDo]

Chili, which sites do you use to see which stocks are being promoted?

[chilidog]

Chili, which sites do you use to see which stocks are being promoted?

Here's 2 really good ones:

http://stockpromoters.com/
http://www.pumpsanddumps.com/

[chilidog]

Yes Penny stocks (anything on the pink and grey lists) are just like 50 game parlays. Don't waste your money.

sec defines a penny stock as any stock trading under $5. it doesn't have to be otcbb. and they're only like parlays if you don't have an edge.

[itchypickle]

sec defines a penny stock as any stock trading under $5. it doesn't have to be otcbb. and they're only like parlays if you don't have an edge.

Yep and reason why FINRA doesn't allow above board advisers to push anything sub $4....good business. Not as volatile as it was a few years ago but still not worth the risk in my opinion unless you're just toying with the discretionary % in the account.