In previous posts I have warned stock investors to disregard most of what they read on stock message boards. Sometimes you can get some good information and insights as to a stock’s prospects but most of the time the boards are full of nonsense. However, I must point out that one particular message board site is completely ridiculous. Specifically investors should avoid any information provided by Investors Hub since it’s a site that let’s folks tout low priced stocks with impunity and when someone tries to challenge the touts their post are expunged. Moreover, they favor those posters that pay them for other services. I’ve been made aware of these transgressions by way of a scam company by the name of Mariner’s Choice that I had the misfortune and stupidity to invest in years ago. The company is an utter fraud but is defended on the Investors Hub site by a moron by that goes by the tag Value_Investor. Whoever this person is tries to convince people that “technical” analysis can be applied to sub-penny stocks. Doesn’t matter to this moron that Mariners Choice is a scam. He (or she) says every stock – even scams- have value. So while investors should be wary of all stock message boards take my advise and avoid Investors Hub in particular.
know several people who went to see The Wolf of Wall Street and expressed some measure of disbelief with some of the characters and events in the movie. Well I went to see the flick and I can assure those doubters that a lot of that stuff really did go on. Now I can’t attest to the drugs and sex since the places at which I worked on The Street didn’t tolerate any of that (at least to my knowledge). However, the extent of the rah-rah salesmanship and the pushing of junk pink sheet stocks, for which brokers got paid extra large commissions, was absolutely true. Indeed, Stratton Oakmont was not the only firm that engaged in touting pink sheet and other low priced stocks to naive investors. There were lots of them during the 1980’s that were commonly referred to as bucket shops. Rooms filled with young brokers who spent the day cold calling people in the hopes of getting them hooked on these junk stocks by promising huge returns. Of course these “huge returns” rarely if ever materialized and most of these folks were left holding the bag while the firms that pushed this shoddy merchandise got rich.
Today most of these firms are gone but pink sheet stock fraud is alive and well. There are countless so-called “newsletters” that push penny stocks on the Internet and they are usually just unscrupulous promoters who work with the management of companies that are essentially frauds. To be sure, some micro-cap companies can make you money but the vast majority are just SCAMS so I urge all my readers to take a word of advise from a former Wall Street analyst. Never invest in a pink sheet stock unless you are prepared to lose all your money. Go buy a lottery ticket instead!!!