Did you know? I dislike Penny Stocks!
Well now you know, I really dislike penny stocks and so should you. Roughly a year or two ago, I completly bought into the whole ethanol craze and was actively researching various Nasdaq and NYSE ethanol companies like Archer-Daniels Midland and Pacific Ethanol. As I did not have enough money on hand to purchase a few shares of ADM, I went looking deeper to find some cheaper alternative energy stocks. Man did I lose money.
Speculation is the name of the game, kids.
I went to a message board dealing with only the discussion of penny stocks and was amazed at all of the thousands of posts about one stock and one piece of news. Low and behold, there it sat in the forum: “Blue Diamond Ventures- Ethanol Boom-HUGE NEWS”. I read the piece of news literature that the stock was at $0.14 per share and news just broke the wires that Blue Diamond was developing an ethanol plant in Belize.
So, I bought $300 worth through Etrade. But, luckily I was told later that same week that the news was speculation and pure garbage put out by the company and those promoting, “pumping”, the stock. I quickly googled “Belize Blue Diamond Ethanol” and was shocked at what I found: A commence and business forum based in Belize that was telling people that some Director of Commerce or public official was denying all acqusations that Belize approved the sale of the Ethanol plant which was previously a GOAT FARM.
I quickly dumped every piece of stock I owned and lost about $50 since the stock price dropped a few cents since I bought it. A few days later I returned to that forum and there it was as I expected. It was a 2,000 post thread telling people that the people on the Belize forum were lying out of anger and that Blue Diamond Ventures was telling the truth.
I honestly don’t know what the true story was but I know the ethanol plant was never built and the stock price is currently at $0.01-0.005.
Run away from penny stocks as they are all speculation and stock pumping.
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Filed under: Due Diligence, Investments
Hi Cameron, I totally agree with you. As an investor since many years, I did look into penny stocks for a while using different programs, none of which ended up living up to it’s promises. Good thing I just paper trading. I have receive countless amount of spam email afterward, similar to the one you mention. I encourage everyone to stay away from penny stocks unless they know exactly what they are doing or take it as pure gambling. There are so many less risky ways to make money.
Can any expert person tell me what are the key drivers for the growth of Sugarcane ethanol. And if any one tells me how is IBOT.PK considering its business in the same industry.
Will rising oil prices lead any positive impact on the sugarcane ethanol companies like IBOT.PK.
Recently, SRCO.OB has reported stronger than expected growth in their online financial products offering to the Powersports Industry. What’s your comment on this stock considering their Business strategy?
SRCO.OB is in continuous talk with many large Automakers to leverage their products to them. Well this will definitely give a stronger expectation to me that the stock will sooner going to resume their uptrend.