Tom, I just retired after 26 years as a stock broker/ financial advisor. My advice and ignore this if you like since you didn’t ask me, is to avoid penny stocks. Penny stocks always have a lot of hype surrounding them. Typically if you are reading or getting information that tells you all of that information that you have on it, it probably came from a promoter of the stock. There are companies that get paid a lot of money to pump these stocks up for insiders who are just waiting to sell their shares. It’s called pump and dump. Penny stocks are the target of these enterprises. Many manipulators have gone to jail over these schemes. So first of all question the information you are getting on this, the source and the motive.TPK wrote:Thanks for all the warm welcomes everyone. It's great to be here and I am deeply enjoying chatting with all you fellow Americans.
@Mumbleypeg: A pocket knife game huh? I'll have to do some research on that subject. Sounds interesting.
Semicoductors huh? Wow!!! Very Impressive line of work!!! That is a topic I don't know too much about but brings up the topic of one of my other hobbies, penny stocks. If you ever have the time and get bored, you could take a look at Weebit-Nano for me and tell me what your impression of them is.
They are listed on the ASX, have an impressive BOD (David-"Dadi"-Perlmutter) and are working together with Prof. James Tour of Rice University in Texas & CEA/Leti in France useing Silicon Oxide to produce a disruptive new Non-volatile-Memory / Resistive Random-Access Memory or ("ReRAM"). They have already successfuly produced 40nm chips, are currently working on 28nm chips and may advance to far smaller scales over time. Now that may sound like I know what I'm talking about but I really don't. Anyways, I don't want to get too far off topic but like I said, I'd love to hear what you think of them if you ever get the chance to look at them. https://www.weebit-nano.com/ A simple or would be helpful to me. Thanks in advanced Ken, just incase you do Check them out.
Almost forgot to mention that they are also working on some really ground breaking things such as "IoT", "AI" and "PIM".
Greetings from across the big pond,
Secondly. Penny stocks trade on the “pink sheets” and have very low registration requirements, which makes them especially prone to misinformation.
Thirdly, the fundamentals of these companies stink. They play games w/ the numbers. Take a look at any penny stock and look at the history of stock issuance. You will see the number of shares starting low and going up by millions of shares per year. In other words the company is selling more stock and diluting the value of all the stock out there. Start up companies do this on a regular basis and continually knock the price of the stock down raising money to operate.
Along the same line as stock issuance is convertible debt. Debt that converts to stock in the future if the price rises. It’s a double ripoff. They have borrowed money from some sucker w/ the promise that when the stock hit’s a high price that is agreed upon, to bond converts to stock and guess what happens then? More stock is issued and the price drops again. You have to dig through the K-1 filings to find this information out. If you got to the company website and look under investor relations you can find all the filings the company has made. Now you have to search through each one to find what you are looking for.
Another source for the filings is “Free Edgar” website.
My best advice is that penny stocks are lottery tickets. It’s not investing, its speculating and real investing is not speculating. Stick w/ quality companies that don’t play these games.