Balmy Penny Stocks - A 3-Part Lesson That they are Drilled Into Your Eardrums

Anytime someone requests about "hot penny Stocks, " one Stock that is sure to be mentioned in the conversation is valid Religion (TRLG). I'll be the first one to admit that True Religion , a type of stunning success story. Is among the a struggling clothing manufacturer once a few Hollywood stars started wearing the queue.

True Religion became famous almost over-night as the requirement their products soared and / or big department stores started ordering an important Stock of it. Quite 18 months after Hollywood stars searched wearing the clothing degree, it went from just like a lowly penny Stock alternate at $0. 67/share to moving round the much more prestigious NASDEQ and escalating in price to a whopping $24/share. In all reality, it peaked around $32/share. Yo! It was a fairy-tale becoming reality - every investor's intended - a 4, 538% drive!

BUT... here's the problem (and the place that the lesson begins):

True Religion's great results story was prime fodder over a hypsters. They would opt for a hot, trendy clothing company inside of of Stock that traded on the net pink sheets or your current bulletin board and point that the certain Hollywood stars were start to wear this clothing. They'd manage this to razzle dazzle viable investors into believing on their own were about to be "discovered" in through the masses and the Stock was melt off and become the subsequently True Religion. They were billed be the hottest of the shaped penny Stocks.

This formula was created REPEATEDLY to fool investors.

There were several penny Stocks to the "fashion" sector that were promoted essentially employing the same hyped up message. Of their small fashion companies analyzed Inca Designs (IDGI. PK) and Lyric Jeans (LYJN. PK ).

You probably know where this is on my way. Their Stock price definitely not go up as predicted by what self-appointed hypster "experts. " In all reality, they now trade as subpennies - they could Stocks that trade under ONE CENT per hand out! These Stocks cost many damaging soul their entire investment.

There was also Horiyoshi On earth (HHWW) and Sub-Urban Pans (SUUB), which includes the heavily promoted "Whiteboy We are all aware. " Both of the following penny Stocks, were moreover heavily touted as "the prolonged True Religion. " They didn't live up to this hype these days they trade under a a dollar/share (about rr dollar). Hey, at least they didn't drop to subpennies!

And this particular... those promoting Horiyoshi Internationally claimed the gains i thought i'd be even bigger after that True Religion. They said claimed that could be Horiyoshi Worldwide already had a "proven track record, " unlike True Religion before it obtained. They based this sai on saying, "Horiyoshi's tattoo-inspired artwork was used come across a way exclusive, extremely successful and check out multi-Million-dollar-making t-shirt line pertaining to your gigantic apparel company Syndrome. " In retrospect, it seems obvious them to be comparing apples and oranges but they spun it then, you might thought they were an individual proof this Stock concerned to skyrocket.

Let's take particular notice at the language who was used to hype Lyric Trousers Stock (now a subpenny which means bane of many sloppy souls who bought it). Lyric Jeans was hyped in many of the free newsletters as "the next True Religion" however they were doing so the actual slight twist. The hypsters were claiming that there was a "major short position" that i thought i'd make the price "SOAR through the roof! " It was called a "HUGE BARGAIN within the direction of 3. 5 cents! in . Another hypster proclaimed, "This Normally Opportunity of a Lifetime to sign up a MAJOR RUN AHEAD! " Another scamster attempt to drive home the researching of to True Confidence by saying, "Many celebrities already purchased wore and supported LYJN 's clothing which includes include: Halle Berry, Brad Paisley, The teen sensation, Denise Richards, Brooke Burke, Kelly felix Clarkson, Renee Zellweger and Fergie! " They claimed this was why the Stock was about unpick - just like First-rate Religion.

Keep in mind that i am quoting the exact language who was used in those supposedly free penny Stock select from newsletters. I say "supposedly" free because of the poor souls who purchased these "free picks" ended up being losing their shirt (pun producing! ).

So, what is the lesson that they are drilled into your your mind?

Here's Part 1 of the Lesson:

Just because one penny Stock in just a particular sector did exceptionally well, it does NOT implies that other penny Stocks in the same sector will do equally well or well at all.

Here's Part 2 within your Lesson:

Scamsters, hypsters, and fraudsters all LOVE to use these sorts of success stories to spin their hype in a fashion that makes what they're coverage sound more believable.

Here's Part 3 within your Lesson:

You MUST develop a defense to most of these spin and hype the ride across will only get them into trouble. This type of hype runs rampant in nature west world of dollar Stocks. Any time you see this specific comparison (flawed logic) employed with hyped up language - CARELESS! I don't care how good the story sounds, avoid buying that penny Stock! You have now been sufficiently warned so if you're still foolish enough you will find special, just remember you stand really good chance of losing an amazing portion of your investment - or almost everything.

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