Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: Abraham who wrote (5257)	5/31/1998 3:37:00 PM
From: BILL L	Respond to of 11850

To Abraham, Call the co. and talk to the right people, and analysize the fundemantals.

To: Abraham who wrote (5257)	5/31/1998 4:04:00 PM
From: Janice Shell	Read Replies (1) \| Respond to of 11850

One of the chief problems with BBs is that so many are non-reporting. That will change soon, with the new SEC regulations. But at the moment what it means is that their "fundamentals" are pretty much whatever they tell you they are. People on many threads seem to consider talking with the company "doing DD"--nothing more is necessary. This is absurd. It's worth taking into account what the company has to say, but it's a big mistake to go no further. Paid-for "analysts' reports" should be taken with a grain of salt as well. Look for independent confirmation that what the company's saying is true. Check incorporation records, see whether the principals have run businesses before, and with what result. Flee at the first hint of Reg-S deals, weird private placements, rumors of floorless conversions. Be wary of company officials who give you the runaround, or refuse to answer reasonable questions. Try to ascertain whether there really IS a product (or service) and whether it'll appear when promised. Delays are indicative of either poor organization or a severe lack of funds. Both can be fatal. And so on... As you say, it's difficult to research penny stocks, but it can be done. At least find out enough to ask the right questions, and if you don't get the right answers, don't invest. (Unless you're a purely technical trader, and that can be dangerous with pennies, too.)