I'll begin this thread topic with the rider: Make no mention of individual stock codes, with their names, details and prices as it is wisely against ET policy.
Penny stocks are the wild west of trading! Anything goes!
Highly speculative.
Under capitilized.
No earnings most often.
Run by minimum of directors often with little qualifications or experience.
Frequently capital raisings therefore share dilution.
Frequently have huge number of shares on issue the longer they trade, into the billions.
Have little in the way of fixed assets.
Pay no dividends.
They often carry debt or just raise more capital year after year.
Frequently tread water for months or years in share price.
Very low turnover, low daily liquidity.
Large spreads (at times).
Huge % drawdowns.
Frequently go bust, you lose 100% of your money.
Frequently resurrect like a phoenix with name changes but keep their shitty directors.
Often see turnover in directors.
Frequently see director's are on multiple company boards.
Definitely the playground of pump and dump rorts due to low turnover.
Easily manipulated.
The media (in Australia at least) love to promote and market these shitty penny stocks because like a media gossip column, the media likes to talk shit about shit. Every day there's a new bs story about some bs penny stock adventure. It's a media marketing paradise which never fails to suck in noobs.
My opinion, frequently penny stocks is just a rorting business. The stock exchange give directors permission to list, who then milk the public for as long as possible.
This is how the scam works; List on exchange, Prior, put out a propectus and glamour story about 'finding gold in the Himalayas', raise money, year after year for as long as you can hold out with this scam game, make presentations, publish pretty charts of gonnawouldashouldacoulda, talk shit every year, keep raising money and use that money to pay your salary, get yourself as a director on as many companies as possible so you get fatter quicker.
Penny stocks are the wild west of trading! Anything goes!
Highly speculative.
Under capitilized.
No earnings most often.
Run by minimum of directors often with little qualifications or experience.
Frequently capital raisings therefore share dilution.
Frequently have huge number of shares on issue the longer they trade, into the billions.
Have little in the way of fixed assets.
Pay no dividends.
They often carry debt or just raise more capital year after year.
Frequently tread water for months or years in share price.
Very low turnover, low daily liquidity.
Large spreads (at times).
Huge % drawdowns.
Frequently go bust, you lose 100% of your money.
Frequently resurrect like a phoenix with name changes but keep their shitty directors.
Often see turnover in directors.
Frequently see director's are on multiple company boards.
Definitely the playground of pump and dump rorts due to low turnover.
Easily manipulated.
The media (in Australia at least) love to promote and market these shitty penny stocks because like a media gossip column, the media likes to talk shit about shit. Every day there's a new bs story about some bs penny stock adventure. It's a media marketing paradise which never fails to suck in noobs.
My opinion, frequently penny stocks is just a rorting business. The stock exchange give directors permission to list, who then milk the public for as long as possible.
This is how the scam works; List on exchange, Prior, put out a propectus and glamour story about 'finding gold in the Himalayas', raise money, year after year for as long as you can hold out with this scam game, make presentations, publish pretty charts of gonnawouldashouldacoulda, talk shit every year, keep raising money and use that money to pay your salary, get yourself as a director on as many companies as possible so you get fatter quicker.
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