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July 12th, 2007 | by admin

PUMP and DUMP PENNY STOCK

Category: Penny Stock

RE: Pump and Dump –NOT what the Rich Sage’s Stock of the Month is about in any way… 

Often when an Investor gets an email about investing the first point that comes to mind is a PUMP and DUMP type of stock promotion.

These are highly illegal actions where a stock promoter will send out to the masses the stock recommendation and when the stock rises 20% or 50% or more –whatever the promoter is seeking, they sell. In short, pump the stock, and DUMP IT.

In the Rich Sage’s NEXT SuperStock Stock of the Month newsletter, the idea is to present quality.  In the fall of 2004 I made a study of about 400 companies that were OTC BB (usually penny stocks) and sent out press releases.

Out of 400 that I studied, I found ONE that suited my investment criteria.  Just One!

That told me one thing –there are not enough penny stocks that I want to feature. I’d run out of them after a few months.  Then I expanded my stock of the month list to feature penny stocks, growth stocks and stocks under $10.00, allowing me many more quality stocks to work with.

If there is one thing that I am looking for in the stock of the month, it is quality. Based on sales, margins, etc. (sorry, I cannot reveal all my criteria) I look for companies that offer quality to the customer and Investors.

That’s what I bring to my readers.

Success,
The Rich Sage,
Editor, NEXT SuperStock

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