Blog : 5 Penny Stock Protections Redux
by Peter Leeds on January 20th, 2015
There are 5 things which every penny stock investor need to know. This will protect your money, and help steer you toward better low-priced investments.
Only Trust 100% Unbiased Picks
Almost every stock guru out there has taken money from the companies they talk about. You are reading advertisements that have been well disguised.
Peter Leeds invented the 100% Unbiased Guarantee, ensuring that neither Peter, nor any of his team, have EVER accepted a single penny of compensation in any form, from the penny stock companies they talk about. And they never will. Peter will be the first to tell you that he'd rather go broke than compromise his ethics.
Don't Fall For Story Stocks
A great story is that this tiny company is working on a cure for cancer... or an engine that runs on gravity... or a 'Water Box' that will bring clean drinking water to every corner of the globe. That's all great... however:
A great story is needed for bad penny stocks to help drive the shares higher.
That same great idea has already been thought of by actual real companies, who may be working on a solution as we speak.
Beneath most story stocks is an over-valued share price, and almost always a dishonest promoter who needs a stampede of investors for her scam to work.
If you find that the penny stock company you heard about is exciting and their solution will change the world, then they've already got you. You will lose on this investment. At least we tried to help.
Beware of 1 Man Shows
Even a 12 year old in Indonesia can put together a nice-looking web site that seems legitimate. Even if the person behind a newsletter or service is an actual adult who knows about investing, their resources are limited and their skills can only go so far.
For what we do at PeterLeeds.com, we rely on an entire team. Analysts, support staff, contract workers, writers, and customer service. We have always been an actual complete business. Almost all 'stock pick' newsletters or services out there are just a single guy trying his best with limited resources.
For what we do, I can personally tell you that it could never be accomplished by one man. The analysis on our Stage 1 short list alone takes more than a single person. The best results for you will always be from a group effort of the highest caliber analyst team.
Avoid Pink Sheets and OTC
Tough Love: Quit getting killed on pink sheet companies, please. That just gives penny stocks a bad name, and you guys are making my job unbelievably harder. People think penny stocks are poor investments, and I'd agree, especially if you think the way to make money is by sinking your cash into the pink sheet stocks.
Weaker companies can not list on proper exchanges. The Pinks take anyone. The result is that marginal, or almost bankrupt, or financially broken businesses with ridiculous business plans list their shares on the Pink Sheets or OTC markets.
You want to make money in penny stocks? Stick to the Bulletin Board, NASDAQ, NYSE, or AMEX markets. The percentage of higher-quality companies there tilts the playing field dramatically in your favor.
And the big one is:
Avoid Free Stock Picks
Ask yourself why they are telling you about what they claim is going to be an amazing, ground-breaking company. Why do they need to convince you to invest your money? (Not to mention the thousands of others they also promoted the same penny stock to).
Is it just out of the goodness of their heart? They don't even know you!
Spoiler alert - great up-and-coming companies do not need your help. Nor do they need you to invest a few hundred dollars into their stock. But you know who does? Promoters. Scam artists trying to artificially inflate the shares of some super-tiny penny stock, so they can cash out as soon as the shares move higher. They are trying to scam you. They are trying to trick you. The only way they will successfully steal from you is if you fall for their professional-looking, seemingly logical, glamorous and exciting lies.
On another note, check out our latest Video, which is not slated for public release until Wednesday. You get the first sneak peek!
As of January 2017 we no longer publish the blog and it has been removed from the webiste menu.
You are reading this old blog entry because we still like to reference it. :-)
You are reading this old blog entry because we still like to reference it. :-)
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