March 23, 2010

If Its Too Good To Be True .........

People will ask me about investing in pink sheet stocks (.pk) or over the counter bulletin board stocks (.bb) from time to time and my answer is always the same, I have yet to see anyone make any money buying them. So run, dont walk away from anyone who is offering to sell you anything like that.

I have been around stocks for almost three decades and the story is always the same, its a small company with a great product that just needs funding.  Maybe something to do with China or India.  Biotech and a cancer cure always generates some buzz.  Homeland security is new.  JUNK.  I know the stories sound good but so does Dr. Seuss.

If the company actually had a real product, they would go the private equity route to fund their needs but those guys are far too smart for that junk.  So the peddlers of pink sheet and otcbb companies have only the regular investing public to prey on.  Stay away.

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