pennystocksites

At this obviously very impressive and handy blog, pennystocksites.com, we strive to keep the investing public informed and updated on what sites are legit, which ones are scams, and what penny stocks are being spammed.

How we rate sites and stocks:

Legit - Websites that strive to keep their information accurate and honest will get a “legit” ranking.

Grey Area - Some sites will have a mix of legitimate content, but also have some suspect content, these sites will be giving a Grey Area rating. This does not mean they are bad, just that investors should be cautious and read the fine print carefully.

Promoter - This is a website or service that for a fee, usually stock, cash or both, will disseminate information about a stock to investors via press wires, email, websites, or normal mail. Promoters can be legitimate by providing honest and factual reporting on their client company and by providing a clear disclaimer listing their compensation. Scam or spam promoters will often not indicate, or make it difficult to find a disclaimer stating their compensation details, or use spam email lists and fly-by-night websites to push their stocks.

Scam - There are many fly-by-night websites that appear suddenly with an amazing story about their spectacular stock picking history. They will often have a big list of penny stocks showing impressive gains from the past. These lists are possibly fabricated in an attempt to make readers believe the current stock pick will have the same type of gains. Alternatively these may be existing sites that tend to promote stocks to their existing members and unsuspecting in new visitors.

Spam - Are you hearing rumors about some low priced penny stocks that is going to double? Is this stock being spammed on other sites and into email boxes? We will post information and comments on widely spammed stocks.

Pump - Stocks which are currently under promotion. These companies pay a promoter in stock or cash to send out information on the company to their list of investors. This is common practice in the world of penny stocks. Not all companies being pumped are bad, in fact many of them have promising and profitable businesses. There are good promotions and bad promotions. Using a legit promoter with full disclaimer is acceptable, the use of unscrupulous promoters with blatant promotion techniques such as spamming is less desirable.