Rande Is. . .FISHING. . [under $1.50] Message Board

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Microcap & Penny Stocks : Rande Is. . .FISHING. . [under $1.50]

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To: P.S.N. who wrote (847)	2/28/1999 7:58:00 PM
From: Rande Is	Read Replies (1) of 4766

Thanks for the link, P.S.N. . . . . . . . . Yeah, the Scammy Awards thread inspired many around SI to look a little deeper at the penny stocks. . . and be sure the stocks in their own portfolios aren't future Scammy award winners. All participants can be proud for helping bring some of these scam methods into the light. That thread is interesting, but it only deals with one scenario of scams and scammers out there. The Scammys showed us there are many unique scams. The ones that I think are MOST criminal these days. . .are the Pump and Short. He mentions the Naysayers on his thread and that is good. . .because that is where the real losses occur. Think about it. . . .if any POS stock goes from .10 cents to 10 dollars and stays at 10 dollars for the next 10 years. . . who loses? NOBODY LOSES. . . . Everyone that got in could get out without a loss.. . . and many made money on the way up. Only thing happening at 10 dollars is some churn. . .no losses, provided there are an equal number of buyers and sellers. But that is the whole premise for short-sell attacks being profitable...to upset that balance. . .to "raid" the capitalization. It is only when that same stock is ATTACKED by short-sellers, naysayers, bashers and "investigators" that ANYONE shows a loss. When the short-sellers place their "block" on a stock and force the price down by organized manipulation. . .THEN those that held it begin to lose their money. Now whether this shorting is caused by companies' own boiler room operation or whether it is by some team of shorts saying they want to "save" investors from making a bad investment. . .what difference does it make? It is ONLY when the short-selling and share dumping happens that the losses occur. So when a stock [not just pennies] rises, investor/traders need to watch for many enemies: Convertible preferreds Offshore debentures and other offshore private placement Short-sell raiders Pump and dump boiler room shares poured into market at the high Company dilution at the high CEO and insider dilution at the high Market Maker manipulation SEC halt where investors lose everything and NEVER see a nickle The funny thing about it is that of all of those listed above. . . the one that is the MOST dangerous is the SEC halt. Ask those in RMIL, SMEK, USAT and many others. . . .it is a DREADFUL thing to go thru, because you cannot sell your shares at ANY price until the company resumes trading. . .but far too often it never does. And EVERYBODY looses. [except the short-sellers that never have to cover unless the stock resumes trading at a small fraction of the price] Bottom line. . . penny stock investing is like gambling and should never be considered an investment. Nobody should place at risk any monies into OTC-BBs, Nasdaq/Amex pennies, NYSE pennies and Canadian pennies, unless they can afford to lose all of there monies. Because as we saw in the Scammy Awards show. . .MANY DID. Rande Is

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