thank you honest answer, second question how do you decide when to get involved and when not too? alleged misconduct by company? paid promoters, front runners...
Lots of possible red flags: really exaggerated hype, as you say, is one, especially if it seems to be a coordinated effort on the part of several people. Another might be press releases making claims that aren't adequately explained by the company. Add to that companies that are issuing stock like crazy, and have way too many shares out. I also get quite a few PMs and emails from people expressing their doubts about stocks they follow, and suggesting we take a look at them.
Then I read whatever material the company has put on the record, and read the thread. If the story seems interesting, I start asking questions and checking things.
basically is there a type of bb company you would call bash proof, impeccable mgmt, visible product, legitimate business model...
All penny stocks (though not all BB stocks) have one problem in common: a lack of money. Certainly they won't, in the fundamental sense, ever look as solid as one of the Dow Thirty. But the kind of company you describe would have a good shot at success. And, though it's no guarantee, reporting to the SEC does a good deal to keep management accountable. |
