Are These Penny Stocks Good Or Bad?
Penny Stocks Good Or Bad… This One Is CRAZY!
It’s official.
I can die today… I’ve now seen everything.
While flipping through a financial magazine (who will go unnamed to protect the innocent), I came across what I thought was a joke.
It was an announcement that a company was raising $3 million in an IPO. Nothing strange… until you realized what they want to do with the money…
I had to look twice…
The Crazy Penny Stock IPO
I had to read the article… then do my own research.
Was this a good penny stock or a BAD penny stock – you’ll have the answer in a moment!
I can’t believe I’m saying this… but there is a penny stock company that’s raising money to find Bigfoot.
There I said it… Bigfoot Project Investments Inc.
Talk about a hairy stock!
Hahahaha!
I’m not kidding though… I took a look at the NASDAQ.com site and sure enough the company was listed, having filed an S-1 to go public.
Their stated purpose for raising money:
We are a development stage enterprise organized for the purpose of finding, documenting and collecting evidence of the existence of the creature known as Bigfoot, in direct connection with this purpose is the development and production and distribution of documentary and fictional films.
Really, I almost fell out of my chair.
Doing Due Diligence on Bigfoot
The first question… is this an April Fool’s joke?
I mean… really… Bigfoot?
Why not Santa Claus, the Tooth Fairy, or the Easter Bunny?
The first big strike this company has is their business model. They want to capture Bigfoot and then make a movie and sell it.
Not exactly a hotbed of demand for that product if you ask me.
Anyway, I kept digging.
I took a look at the S-1 the company filed… that’s the legal form they file to start the process of going public.
It’s filled with juicy tidbits… like:
The auditors gave the company a going concern – which means they doubt the company will survive.
The major shareholder bought his own collection of Bigfoot memorabilia from himself… for 4.4 million shares and a note for $484,000 (a nice deal if you can get it)!
The company has 207 million shares already outstanding (way to many for a startup).
They have $7,582 in assets… and last year reported $2,437 in revenue. Not exactly breaking any records here.
The company goal is to produce a DVD about finding Bigfoot and sell it. I don’t see this as a big market…and to be honest, I’m suspicious about everything this company is doing.
This company is media savvy though… a few months back the Wall Street Journal did an article on the company… you can find it here: WSJ Bigfoot Article.
Is this penny stock good or bad? My feeling is stay away.
You’re not going to make any money chasing mythical creatures… you’re better off looking for real companies with real businesses and investing in them.
Hold onto your money and don’t get scammed!
Good trading…
Brian Kent
Note: Brian Kent has been trading the markets for more than 2 decades and now writes and edits for PennyStockResearch.com. You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://pennystockresearch.com/free-reports/.
Category: Penny Stocks to Watch
