I'll remind you guys that ET has a specific policy against posts on penny stocks. Here's the rules -- any stock (not OTCBB or Pink Sheets) can be discussed that meets at least one of the following two criteria: 1. It trades above $5.... or 2. It has at least 1,000,000 shares of average daily volume. If a stock does not trade above $5 and does not have an average daily volume of at least 1,000,000 shares then for our purposes it's a penny stock and we don't want it discussed at ET. There are plenty of sites that cater to penny stocks and we request that you take your penny stock posts to one of them. Thanks.
Will anyone join me in formally petition Baron to grant an exception of the rule for this single thread only. I found it personally interesting.
I understand Magna's reasoning because these stocks can be manipulated so easily. The DTC has been cracking down on trashy stocks, I know MJNA was under the DTC chill for some time and people who pilled into that stock and other Med Mary Jane stocks lost their Risk Capital. The Spreads on them are killer, the volume with some of the Medical Mary Jane stocks are non existent and I know how those Traders manipulate them to climb higher, it's a very cool trick but corrupt so it's best not to discuss that. I have experience in organic chemistry and agriculture science, with MJNA I read through their reports they dragged their feet on and finally when the DTC placed that chill on them, they cried they were under attack from the Short Sellers, Anti-Freedom and the DTC! I like how the DTC has placed a chill on companies that are refusing to keep current and inform shareholders of what is going on. I know of a guy who bought a Medical Marijuana stock who got a Clearing House fee of $350.00 because the Certificates had to be physically delivered to his broker. He bought $2000 worth of stock and now when he goes to sell it, he might owe the broker to sell the stock because it's worth less than $200.00. I am not happy he is going to lose money, I am happy the DTC is finally doing something with the SEC about nasty shell-company stocks that don't exist other than float around on the Gray-Market. I hope this prevents inexperienced investors from buying garbage stocks (not saying your stocks are trash!) that are often moved by collusion and a group of unscrupulous people. Thank's Manga for E.T.s policy!
To avoid being non-compliant I wont name tickers, but looking into some of these they are not businesses to be owned. Some of the companies are using their eq offering as a way to cash out on hype around medicinal mj. One company has had ~700k in revenue with 500k operating expenses and is taking 708k for SGA. That to me looks like they are using the excess cash lying around from their eq offering to pay themselves . Their retained earnings is like -4mm which makes me think theyve been doing this for a while and they are now super levered with LT notes due 2015. I have seen this sort of income statement and balance sheet on a few of the tixkers u mentioned. If my analysis on their business practices are right, then be very careful who you choose.
Has anyone been active in this sector lately? I'm not going to post any tickers because of the penny stock thing, but there is a lot of stuff going on here and tons of money being made already. Just wondering if any experienced traders are involved. Seems to be mostly complete newbies and a lot of pump and dumpers from what I've read and seen. Most of the symbols are on the pink sheets.