Please contribute!
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I'm sure you've all got spam’s that are pumping the latest and greatest penny stocks that will turn you into a millionaire over night.....perhaps you've seen the movie "Boiler Room" or maybe you've already fallen for one of these get rich quick schemes.....regardless I'd like to use this thread to post experiences, warnings, and any other info that might help someone, somehow, someway, in regards to the shady practices of Penny stocks, and OTCBB stocks.
About 6 months ago I signed up for an ACCOUNT at TDAMERITRADE, to take advantage of a promotion they were having. I had to achieve APEX status. In order to do this, I used my unlimited month of free trading to purchase some legitimate (relatively speaking) securities but I also bought a few penny stocks (sometimes sub penny stocks, to achieve a total number of 15 trades to reach APEX status. Below I've listed the stocks as they stand in my account. As you can see, as one would expect (or perhaps not) most of them have lost 95+ % of there value (if they had any to begin with is the real question). I lost around 50 cents, boy am I angry! It really grinds my gears! Some of these companies actually have had reverse splits which actually diluted the 'value' of the shares even more LOL.
My point is RUN away from anyone offering you a chance to get rich by buying at the bottom of great unknown company.
Many scam artist, usually based out of NEVADA (because it is relatively eas) reverse merge into SHELLS (previously bankrupted companies that already went through the process of making their company public) they then hire a firm to spam the hell out of their supposed groundbreaking idea, and stock symbol, they build a website (to add legitimacy) and even buy a phone number so you can speak with the "CEO" directly about the "company." Once they sold millions of worthless shares, they disappear into the night, only to rinse and repeat this process.
WHY WOULD ANYONE spend give their hard earned money to these SCAM artist is beyond me....thoughts anyone?
I left the symbols of the stock in case anyone wants to see the cold harsh reality of pennies for themselves (or perhaps you can stop by some 'investor' forums and see how paid shills pump these worthless dog piles), moderators please feel free to remove the symbols if this violates forum rules.
Readers please update the WIKI with any insight, or experiences you have in the PENNY REALM.
The last column is % LOST, sorry I don't know how to format a table to make it easily readable on this board.
USA TODAY ARTICLE ON PENNY SCAMS
Symbol Qty Last Change Mkt Val Maint Req Cost Gain($) Gain(%)
VYON 1 0.009 -0.001 0.01 0.00 0.08 -0.08 -89.41
RLTR 10 0.024 0.00 0.02 0.00 0.06 -0.03 -57.89
MLXO 1 0.0055 0.0005 0.01 0.00 0.08 -0.07 -92.86
GFCI 3 0.0036 0.00 0.00 0.00 0.11 -0.10 -96.67
CDXH 1 0.002 0.00 0.00 0.00 0.13 -0.13 -98.46
CCPI 1 0.008 0.00 0.01 0.00 0.16 -0.15 -95.00
ACMG 1 0.002 0.00 0.00 0.00 0.06 -0.06 -96.77
