Most free stock picks found on the internet are worth exactly what you pay for them .. Absolutely nothing!
Every major search engine has become flooded with new web-site listings and new pay-per-click advertising links for hastily built web-sites offering “free stock picks”. The first thing you’ll notice is that they advertise the company ( the free stock pick ) right on the front page of the web-site. That’s your first warning sign.
The bold print screams at you to “buy this stock now” at $0.50. It’s going up to at least $10.00 a share just any day now. You’ll get to make at least 500% and maybe as much as 10,000% on your little 50 cent per share investment. Get real folks. Nobody knows for sure where a stock price is going (unless they manipulate or pump it), and even then they don’t know.
They also will ask you to join their “mailing list” ( commonly known as the chump list ) so they can send you more of their junky stock picks of shaky companies hoping you’ll be the chump that buys in and helps run the share price up. Don’t join.
1. Here’s the simple bottom line on most free pick sites:
It’s common knowledge ( always read their disclaimers/disclosures ) that the parties of interest running the sites are holding large blocks of shares of the very stock they are advertising. Most publically traded companies have IR (Investor Relations Reps) whose main job and responsibility is to make the company and stock visable and to “get the story” out.
The new thing these days is to hire 2nd and 3rd party advertisers to build web-sites used for nothing other than advertising and pumping up the share price. The web-site owners either purchase shares themselves or the company will give them shares in exchange for the advertising and pump campaign. If they are sucessful in running up the price they and many company insiders will be systematically selling off their shares into the run-up so they can get their pay-off. End of story .. plain and simple.
2. Message Boards and Forums Can Be Hazardous To Your Wealth
By far the most useless and disgustingly distasteful thing to hit the stock pick scene is the message board and forum discussion sites. This is where all the truly devious and nasty types hang out just waiting for new prey to come on the scene only to be picked to the bone and manipulated by the bad guys. These people frequent many different boards under alias names trying to trick gullible new members into buying or selling certain stocks based on half truths rumors and distortions. Trust us – don’t get involved.
3. You Wanna Do What? Purchase A List Of Penny Stocks? Oh Man!
What for .. they’re useless. That’s like buying a list of phone numbers from somebody when you can pick up a phone book and get all you want for free. There are quote sites and stock scanning sites all over net that allow you to type in the price ranges of stocks you’re interested in and they will scan all the exchanges and get you all you want… for free. You can go to all the major exchange sites ( AMEX, Nasdaq, NYSE, and the OTC-BB ) and find an alphabetical listing of all the companies (with the symbols) trading on their exchange. Don’t buy a list!