AwesomePennyStocks.com is a website that offers a free subscription to an investment newsletter that targets the buying and selling of penny stocks. In exchange for simply supplying your email address, you will get a newsletter with stock recommendations that allegedly rise in cost on a regular basis, allowing you to earn payouts on your investment.
Penny stocks is a term used the market to reference stocks that trade for under $5.00. Awesome Penny Stocks generally seems to limit the stocks they investigate and promote to being those that actually trade at less than $1.00.
While it may seem hard to believe (or not so hard to believe, given the current financial situation in the US) that there are legitimate stocks being traded at less than $1.00 a share, it is true. Penny stocks are also called “micro cap equity” and have been around for a long time.
So is Awesome Penny Stocks a Scam?
It’s hard to say definitively whether Awesome Penny Stocks is a scam, but it is definitely dangerous. First of all, penny stocks are notoriously easy prey for price manipulation. This means that a company like Awesome Penny Stocks can purchase a large amount of potentially worthless stock, recommend it to their subscribers, who purchase the stock causing the price to rise, and then the company sells their stock, causing the the stock price to drop again.
This is a well established problem with companies that recommend penny stocks, even long before the Internet became the go-to investment guide.
Another serious problem with Awesome Penny Stocks is that they admit in their Disclaimer that they accept money from third party companies, and therefore admit to being biased when reviewing these companies. This means that Awesome Penny Stocks could be taking money from companies for the purpose of recommending their stock to their subscribers in order to bring up the price of their particular stock.
And if those problems aren’t warning enough, Awesome Penny Stocks also freely admits in their Disclaimer that no one who works for them actually has any sort of training or certification as far as investment advising is concerned. So really, if you were interested in penny stocks, you would be much better off researching and choosing them on your own, than taking a chance with a company that admits to taking money from companies who might wish to promote their own stock.
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