5 replies to this topic

[armondtoth]

These newsletters try to get as many people to sign up for their penny stock advice as they can. And if you have searched for anything about Penny Stocks, I am sure you know what I mean. The more people they have the better probability they will find a client.
Huh? A Client? Aren't the people that sign up for their newsletter's their clients?
No.. they are merely the bait. The Clients these penny stock newsletters are really after are the low-cap companies looking to raise a lot of money quickly. These newsletters don't care if the company is a complete scam or not and this is why: The more people these newsletters have signed up to receive their advice, the more people they can reach for the company. The more people the newsletters can reach for the penny stock company, the better hyped the penny stock companies press release will be when it is issued. Thats the benefit for the penny stock company.

The newsletters however benefit a little differently... these penny stock newsletters will charge a HEFTY fee for their services... upwards of $30,000 easily but not all of that goes to the penny stock newsletters. These expensive penny stock newsletters services typically include "pumping" the stock over a certain period with a large portion of that expensive fee. Some newsletters take the "pumping" to forums and any other place investors may be.

In the $30,000 example; $28,000 may get re-injected back into the company by the penny stock newsletter while they keep the remaining $2,000. The penny stock newsletter then hopes the company (scam or not) has one heck of a Press Release about to be issued. If they do and the stock end's up going running positive, the penny stock newsletter will "Dump" their shares when they feel the momentum has peaked. This will typically create the landslide every penny stock traders has been a part of... The Pump & Dump. Good thing for the penny stock newsletter is they get to keep the profits of that $28,000 as that is in direct relation to how well they performed their "pumping". Bad thing for the penny stock newsletters followers is, they usually get caught in the landslide.

[20MillionDinar]

The classic Pump & Dump scam.

Nice post!

[drscott]

I know for a fact your very wrong,i've signed up for there news letters and as well done my own intel on the companies they are saying will be big hitters,just for example the about 2 months ago were pumping up NSRS now if you got in very cheap and it went to 1.72 depending how much you put in as i got mine at .06 well yes i did very well and dumped it .....thats what penny stocks are all about! happy trading

And for all you that don't know about the news letters or email alerts....there free!!!!!

[WallyWeaver]

Remember:

Bulls make money,
Bears make money,
Hogs get slaughtered,
and Sheep get shorn.

Translation:
Bulls and Bears make money when the market is up or down,
Hogs greedily put all or most of their money into one position and usually stay too long.... they get slaughtered.
Sheep are those who make picks based on whatever their pied-piper is telling them. They may win occassionally but will most likely end up losing their coats.

The moral of the story is if you want to do well on Wall Street do your own research. Read some books ("The Intelligent Investor," "A Beginner's Guide to Day Trading," or "Japanese Candlestick Charting Techniques," to name a few); watch CNBC and Fox Business as much as possible; subscribe to a well-known investor's journalism source like Barron's, Forbes, or The Wall Street Journal; get some "investor buddies" that you can bounce ideas off of; make it a habit to listen to at least one quarterly conference call of a company you are interested in; learn how to read an earnings report, etc.

In other words, become a bull or a bear (investigating and making your own picks), don't be a sheep (relying on "guru" picks) and certainly don't be a hog.

WW.

[armondtoth]

I know for a fact your very wrong,i've signed up for there news letters and as well done my own intel on the companies they are saying will be big hitters,just for example the about 2 months ago were pumping up NSRS now if you got in very cheap and it went to 1.72 depending how much you put in as i got mine at .06 well yes i did very well and dumped it .....thats what penny stocks are all about! happy trading

And for all you that don't know about the news letters or email alerts....there free!!!!!

No most of them you pay a yearly subscription price, usually around 40 dollars

[storm1]

No most of them you pay a yearly subscription price, usually around 40 dollars

 

no, most of these are free. called paid promos. the promotor gets paid by the company, either in stock or in cash.

and yes they are scammy, but you can still make good mooney on them if you are experianced. ie look last week at CYIG This stock went from .003 to 2.87 in one day. thats a 94,000% increase a 500.00 buy would have paid you $470,000 in one day.

did i play it? no i sat there like a dufus and watched it all day Doh!!!!