Premiere Penny Stocks (www.PremierePennyStocks.com) is a new penny stock investment website that offers its members free newsletters which alert them to stocks which are “set to rise sharply in value.” Premiere Penny Stocks especially emphasizes that they find the undervalued stocks, which won’t come up on the radar of large investment companies.
In addition, they promise they won’t “inundate your inbox with emails…won’t waste your time with companies that ‘might’ break out.” Instead, you only be alerted when a very specific stock that will raise in value has been identified.
Premiere Penny Stocks promises that it conducts extensive due diligence on companies everyday, and that the success of their subscribers speaks for itself.
What is a Penny Stock?
The market uses the term penny stocks to reference stocks that trade for under $5.00. Though it may seem doubtful, the truth is that there are legitimate stocks being traded at less than $5.00 a share. In the trading industry, penny stocks are better known as micro-cap stocks and have been around for a long time.
When researching penny stocks, one of the first things you learn is that the cheap cost of penny stocks makes them a prime target for fraud and market manipulation.
A company can implement a large purchase of cheap stock, which causes the price to rise, and then recommend this stock to others. Due to the recent increase in value, many others will purchase the stock causing the price to rise even higher, and then the company sells their stock, causing the the stock price to drop again, leaving the second wave buyers with a loss.
This is a well established problem with companies that recommend penny stocks, a problem that even pre-dates the Internet and has long made traders consider penny stocks extremely high risk.
Is Premiere Penny Stocks Legit?
It is pretty well known, and the basis for many online jokes, that Americans don’t read Disclaimers or Terms & Conditions pages, instead we simply check the box that says we did and move on. But PremierePennyStocks.com acts as one of the best examples I’ve seen of the reason why you should read these pages before investing your money.
Every website will have a Terms & Conditions or a Disclaimer that says they don’t take responsibility for your choice to invest your money, and they make no guarantee that you will make any money from their advice. This is very standard.
However, the first sentence of the Disclaimer for Premiere Penny Stocks states not that they don’t guarantee you will make money, but rather that “We are engaged in the business of advertising and promoting companies.” The companies that they recommend in their newsletters are companies that have paid them for their recommendation.
Neither Premiere Penny Stocks nor any person employed by them has any sort of certification or background in brokerage, banking, investment advising, etc. They are a company whose sole purpose is promoting another company, and the way they are doing this is by creating a newsletter that is sent out for free to people who are looking for companies in which to invest.
Would you like to add your review for