Blog : Honesty in Penny Stocks?

by Peter Leeds on September 11th, 2015

Few industries are more vulnerable to manipulation than penny stocks.  In fact, any punk kid (typically a male in his mid-twenties) may try to run a scam, or pump & dump, or generally just be misleading.
 
 
These types try to trick some gains out of the general population.  These are the wannabes who can barely afford their rent (assuming they aren't operating out of their mom's basement), and will gladly trick anyone if it enriches them.  They think the message from "The Wolf of Wall Street" movie was a positive one, because they are detached from the hardships they cause others through their actions.
 
These punks post misleading information on message boards, throw some lipstick on a pig in their free mass-market penny stock e-mails, or get paid by the companies they promote in their online newsletters.  No matter their angle, it all comes down to the same thing:
 
 

Typically, they already own shares of whatever penny stock they are rambling on about, and if your buying lifts that stock at all, then they can cash out for a profit.  They are instilling artificial buying demand in whatever bankrupt penny stock or shell company they are using.
 
Keep in mind, you won't even be able to tell which promotions are paid advertisements, or pump & dump schemes, because the shady players in penny stocks have gotten pretty good at appearing professional.
 
Here are ways to protect yourself:
 
  •  Phone Number?
Do they even have a phone number?  Usually they won't because they simply want to run their online website to squeeze some money out of you - they don't actually want to speak with you.  Besides, if you did talk with them, they know you would instantly see the light.
 
Any real penny stock business or actual company will have a phone number, e-mail address, and dedicated customer support representatives.  
 
  • Trust Credentials
Does the publication or individual you are following have any unique credentials?  A book (not self published), top media appearances, or speaking engagements with top venues?
 
  • Free Penny Stock Picks are Cursed
Any penny stock picks you get for free are manipulative.  Why did some penny stock company send YOU their glossy printed materials?  Why did they e-mail YOU out of the blue?  They need hundreds, or thousands, of random people to drive the price of the shares higher.  Then the promoter dumps their holdings, and the penny stock price collapses.
 
  • Follow the Leaders in Penny Stocks
The leading authorities on any topic will typically get paid to write for top outlets, such as Forbes or About.com.
 
  • 100% Unbiased Guarantee
Only penny stock publications with a 100% Unbiased Guarantee are known to put your interests first.  Like us, they never have accepted a single cent in compensation from the companies they profile.  They also commit to never giving their picks out to family and friends first, and do not publish penny stock picks in which they already hold a share position.
 
Peter invented and developed the 100% Unbiased Guarantee.  Now it is used industry-wide.
 
  • Public Appearances Can't be Faked
If the "penny stock expert" is as great as they claim to be, which public appearances have they performed?  Do they just have a fancy website, or have they been asked to speak before venues such as The American Stock Exchange, the Arch Investment Conferences in Manhattan, and the International Money Show?
 
  • Lonely Penny Stock Guru
Almost all penny stock prognosticators are one-man or two-man "organizations."  To fully conduct penny stock analysis into the thousands of potential investments takes many people, a full team.
 
  • The Boring Part
Boring, yes, but read the disclaimer.  All the paid promoters out there must legally admit that they are getting money from the company they are talking about.  Even with the legal requirement, they still don't all confess to their biased promotion, so be super cautious.  And when they do admit to it, you will typically find that statement hidden in the middle of a massive text paragraph on page 2 of their disclaimer.
 
  • Large Following
Even the weasels can set up Twitter and Facebook accounts, but it is harder to fake massive numbers in their following.  Of course, some in the industry have stooped to that level, paying to have their Facebook numbers artificially jacked up (which is why the demographics showed that 90% of their "friends" are 13 year old girls from Egypt and Indonesia).
 
  • Track Record of Penny Stock Results
Check out their online track record, and even ask to see it pick by pick.  The shadier players may be faking their numbers, so look at any information with a skeptical eye.
 
  • Ongoing Content
Do they produce any quality content on an ongoing basis?  For example, do they have a widely followed penny stock blog?  Have they written any mass-market articles recently?
 
  • Testimonials in Penny Stocks
Be warned!  It would be easy to post fake testimonials, and many in the penny stock industry do exactly that!  Look for true testimonials, such as those on video.
 
  • Experience
Many of the most-professional-looking websites didn't even exist a year ago.  Put your trust into the authority which has been around for decades, rather than those which are new to the scene.
 
Generally, most of the "get rich" promoters are simply posting an online brochure.  People fall for their promises and misleading information, and they don't even need to put up a phone number!
 
 
Look, all these "I want a Lamboughini" kids don't have a proper office, and no media or publishers will touch them.  
 
Put your trust in the authority will the full team, decades of experience, top public speaking engagements, and coverage across all leading media.  Put your trust, as 41,103 others have, in Peter Leeds.
 
 

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