I get emails all the time from people asking about whether to buy penny stocks as they collapse.
No.
Bad.
Very bad.
Especially if you ever consider buying these carcasses of companies:
Because both are collapsing, not only stock price-wise, but business-wise too. As I told TIMalert subscribers premarket the other day, I listened to MIC’s conference call where they freely admit bankruptcy is a possibility so that $2 support (which it hadn’t broken through at the time) was a great shorting opportunity, not buying (some subscribers listened and banked as the stock did take out support and dropped 50% in 3 days!)
Today, COIN, whose “business” I’ve laughed at for a very long time, announced some desperate sketchy financing, as the crows circle its carcass, and its stock is now down 30%, under $1.
Guys, these stocks are not to be bought on dips, it’s far better to short, if you can find shares, into spikes as these companies, as most companies in this climate, especially especially especially penny stocks, are for the worms.
As I preach in my PennyStocking DVDs, penny stocks are barely in business in the first place, when anything like a world economic collapse prevents the possibility of them ever going bigtime, they are literally worth nothing.
Once you penny stock saps free yourselves from your blissful ignorance, you’ll see the gutter of the stock market for its true self…and it ain’t pretty.
Learn and ye shall profit. Ignore my decade of gutter niche experience and ye shall remain penny stock saps.
Posted in Breakdowns, Capital Raising