The BEST Penny Stocks Scam Right Now!
Top Penny Stocks Scam Today… What You Need To Know!
It happens every day. Thousands of penny stock traders get sucked into the latest penny stock scam. It just makes me sick.
Back in the old days, if someone wanted to steal from you, they used a knife or gun and threatened your life.
Now they just send an email.
Twenty years ago, scammer stock brokers sold bad news investments and investors lost millions. And it was all done with a telephone.
Want to see it in action – just watch the movie The Wolf of Wall Street. One warning – if you do, lock up the kids – the sex and swearing was quite excessive – and not needed for this story.
But I digress.
Today the scammers are hard at work with fake websites, phony emails, and fancy online efforts to prove to you a crap stock is a gold mine.
So, how does a real trader know a penny stocks scam?
Right now, the market is probably the cleanest it’s ever been.
The government’s crackdown on bad actors has pushed most of them into the shadows, and luckily their illegal activities are not widespread.
But that makes it difficult.
You see, the scammers are smart. They can still scam you out of your money and not break the law!
If that’s not scary, I don’t know what is.
Let me give you an example and show you how it’s done.
When a company or a shareholder is looking to get more activity in a stock, they know they need a promoter. They need activity for them to sell their own positions – but if no one is there to buy, then it’s difficult to sell and not drive down the price.
So they need marketing and promotions ASAP!
What do these stock sellers do?
They go out and employ an investor relations professional.
Now here’s an interesting side note… you don’t need to be on the management team to higher an IR guy. Sometimes big and small shareholders will do it just to get a stock moving! And management might not have a clue it’s happening!
Anyway, they bring on an IR guy who starts writing up fancy research reports and hot sounding stock tips. He starts working to promote the stock…
And his number one tool of choice is email.
That’s right… they send millions and millions and millions of emails to promote a single stock.
It sounds expensive – and it is… but YOU end up footing the bill!
How’s that?
Well our promoter doesn’t get paid in cash… nope that’s for amateurs. Our friendly promoter gets paid in stock… so the higher the stock price goes, the more money he makes.
Now I know what you’re thinking…
How do you know this?
Was I a deep undercover mole for the CIA in a financial sting?
Was I a low lever worker bee turned informant on these secretive promoters?
Was I a high level promoter who turned over a new leaf after a life changing experience?
No, no, and no.
I know this because the promoters tell you. That’s right. These days the scummy promoters aren’t about breaking the law – that’s too much effort and risk. Instead they follow the ideals of legal disclosure.
The next time you get a fancy looking promotion – look at the fine print. Or better yet – read the disclosure at the bottom of the email.
There, what you read will blow your mind.
You’ll discover this promoter was paid to write and promote the company stock. He was probably paid in shares… and yep… right there he’ll say “by the way I intend to sell my shares at the same time I’m telling you to buy them”!
All perfectly legal… and a way to scam you out of your money.
Shocked – right?
The bet of the Penny Stocks Scam promoter
How’s it possible… why would a scammer put their business dealings right out there in the open?
It’s because they’re betting that most investors won’t read the fine print. Most investors barely read a press release or a web page… let alone paragraph after paragraph of dense legal disclaimers.
They get away with it, because these scammers understand human nature.
And that’s the secret to sidestepping a penny stocks scam.
Simply read.
A famous investor once said (sorry I can’t remember who) if you’re reading about a company, don’t start with the letter from the CEO which will point out all the great things about the company… no… flip to the last page and read the footnotes and disclaimers… it’s there you’ll discover, lawsuits, government problems, and major liabilities.
The reading of legal disclaimers sucks. It’s boring and difficult, and nobody likes it. But do it and you’ll side step 90% of the scams out there.
Now a warning… you’ll never see everything… and you’ll never catch all the tiny details of every company you research… you will come across promoters who skirt the law and don’t disclose everything they should… so just be smart.
But if you get a fancy looking promotion for a stock, read the fine print first… you’ll be amazed at what you learn… and probably side step a penny stocks scam or two.
Good trading…
Brian Kent
Note: Brian Kent has been trading the markets for more than two 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: Pump & Dump Alerts
