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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: TokyoMex who wrote (58179)	2/24/1999 4:43:00 PM
From: Andrew G.	Read Replies (2) \| Respond to of 119973

ATTENTION: To everyone For those who chase empty shell micro-penny stocks for momentum: I read this sorry tale last night from an unlucky investor who clearly was drawn to these volatile, low liquidity, BB stocks. clubs.yahoo.com Message 999 of 1001 Against all advice: CSIX pamarciano Feb 23 1999 7:20PM EST " When I started trading a few months ago a friend told me NEVER, NEVER, NEVER place a Market order. After missing GOIN yesterday I wanted to make sure to get into CSIX today. Seeing that it closed at .02 yesterday, I figured I could buy 60,000 shares for about $1200. Guess what? I bought 60,000 shares at .26 -- around $16,000. Price promptly plummeted. I called Fidelity (my broker) -- doesn't matter to them that I only had $1500 in my account -- I owe them 16,000 within 3 days. Needless to say -- I'm dead. First, please, please, please learn from my tragic mistake -- no matter how much you want in a stock place a limit order. Second, if anyone has any advice (for free) I sure in hell could use it! God bless. " The above call for help is a reminder to me and perhaps to anyone else out there trading these stocks, that there is tremendous risks involved. Much more so than small companies who at least have an IR to handle calls and keep one abreast of new developments. Why are investor's drawn to such high risk 'gambles' right now? I believe it is because the market for small caps has performed so poorly over the past several weeks and those who have had large losses are plunging into ever more riskier territory to salvage themselves. The result, however, may be even greater losses. The next time you see a micro-penny rocket several hundred percent with: -no news -no information available about the company -no trading history or inconsequential volume for over a month -lots of hype but no proof ask your self this: What is to keep this from falling down as fast as it went up? The more of our trading/investing dollars go into no-name stocks the more money is sucked out of value stocks. As odd as it may seem, we are at the root cause of our own depleting investments. Sentiment must be restored to value stocks that have growing income, great prospects and low valuations in relation to their market or sector. If this does not happen, we will fall deeper into a slump, because we will have lost our investment money on sheer crap-shots. CAVEAT EMPTOR