Penny stock newsletters give you all of the information that you need to know about the possible companies that you might want to invest in. However, there are warnings of penny stock newsletters that you should be wary of also, including fraudulent schemes. So don’t believe everything you hear. You also can verify what is true in a newsletter also.
People look to penny stock newsletters for information on trading and advice to what new penny stocks are hot. However, you should never rely on the information from penny stock newsletters because they are becoming less credible everyday.
Many of the penny stock newsletters will print what they are paid to print without verifying the information they are printing is credible from an honest company. With penny stock newsletters money talks, not the truth. Many of the fraudulent companies trying to dump penny stock that really will never go anywhere will pay these penny stock newsletters to print great things about the company and their stock. Maybe it will be an ad offering a one time offer at a very cheap price for the stock or the article might just be creating a lot of hype about the company trying to lure in investors. Many times this works with the luring of all of the false advertising and false information and then the investors are stuck with penny stock that they will never be able to sell to anyone else. And if they are able to sell it, it is because the investor had to lower the price significantly from what they actually paid for it.
Penny stock newsletters are required by law to announce who paid them for printing the ad. This allows you to verify who paid to have the ad printed in the newsletter. If the company who is selling the stock paid the newsletter or someone who has connections or is a shareholder of the company, then chances are good they are trying to dump the stock, but make a lot of money first.
Don’t believe everything you read in penny stock newsletters. Be sure to verify who paid for the ad to see if the information really is credible.
This entry was posted on Thursday, November 29th, 2007 at 11:26 am
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