I received a “newsletter” today from Legendary Stocks.? Now with a name like “Legendary Stocks,” you would think the companies would have a long prior existence.? But the stock mentioned I can’t even find on EDGAR, which is different from all the other penny stocks I have analyzed.
As with all the rest, this doesn’t smell good.? This is a company with small revenues, negative earnings, and negative book value.? Though it trades in the US under the ticker IMNG, I can’t find much data on it.? Even their website has no investor data.? That is abnormal.
Oh, this was a part of Legendary Stocks, 5-point type size? disclaimer:
Legendary stocks has been contracted to receive and manage budget of eight hundred thousand dollars by a third party prime star communications agency for coverage of iMing. In addition, The Legendary stocks expects to receive new subscriber revenue as a result of this advertising effort. [Emphasis mine]
Leaving aside the concept that many Chinese stocks listed in the US are scams, where assets and earnings are misrepresented, there is little independent data to work with here.
But given the 93% decay rate on promoted penny stocks, I predict that by my next birthday, 12/5/2013, IMNG will trade for less than 10 cents a share, adjusted for reverse splits from the present.
I say to all who hear me: avoid promoted stocks.? Buy what you have analyzed: don’t trust what others think, even me.
I got the same offer in the mail earlier this week. Did you read the other fine print that the promoter doesn’t actually trade any of his own ideas? Would you eat in a restaurant where the chef announces that he doesn’t eat any of his own slop?
On a more happy note, at least the penny promoters are offsetting a tiny piece of the Post Office’s on-going losses.
> don?t trust what others think, even me.
The “even me” is reason #28 why I am glad to be a client of yours.
As to penny stock, “a fool and his money are soon parted”.