Penny Stock Newsletters Are Scams

Penny Stock Newsletters Equals Scam

I seem to be seeing tons of penny stock newsletter and penny stock subsciption stock picking services. I even decided to sign up to one that was offering free newsletters about picks. I cant believe that people would invest in these stocks mentioned.

They are total garbage stocks and complete hype. Typical pitch about a secret, undiscovered technology or mineral rights that the public hasnt discovered and based on what the big XYZ is valued at then this penny stock should increase 5000% by next month. I mean do people really believe this stuff ?

Here is a pick from this week mentioned in that penny stock newsletter (THIS IS NOT MY RECOMMENDATION, JUST AN EXAMPLE):

Penny Stock Example

 

The stock price on that stock above is $0.003 cents. (that is not a typo it is priced at 1/3 of a cent per share)….

The email says something like “Hopefully you got in on my Special Pre-Market Alert yesterday on EVDR, which closed up +25% on good volume.  EVDR was up +115% today ” and goes onto say some hype sales pitch about why its great. (I know nothing about EVDR maybe they are real but the hype and claims in the newsletter are extreme)

This penny stock newsletter is a big advertiser on major search engine with expensive ads so it makes you wonder if they give away free picks then how do they make money ?

Well, they send you fancy mailers touting the wonders of a specific company and it looks like it was their analysis that found this supper stock pick when in fact if you read the fine print on the back page it says this is an advertisement and the company mentioned paid for it….Essentially its garbage.

I could probably find hundreds of past picks that spiked up and crashed as we are talking about people moving a stock from .3cent up to .6cent and touting how they made 100% but in reality what sane-minded person would risk investing thousands of dollars on some stock like that.

These penny stocks are usually unregulated on bulletin board exchanges that dont have the oversight or financial firmness to be listed on bigger exchanges.

Sure there are some “real” companies with good growth and products on those exchanges but that is the exception.

The point of this post is give a BUYER BEWARE when paying attention to those penny stock picking services.  More times than not you might be more profitable shorting these picks than buying them 🙂

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