Valtrend - Butler Business Valuation

Penny Stocks: Beware

SEC just halted trading in a penny stock, Neuromama,テつfor outrageous claims (i.e., fraud) after first questioning the Company’s viability two years ago.テつ Alleged market value at time of suspension…wait for it…$35 billion with a capital B.テつ According to the Wall Street Journal, Neuromama’s climb mirrored another dizzying ascent of a stock two years earlier..テつ That stock, Cynk Technology, “earned” a $6 billion valuation…get this while having no assets, no revenues and just one employee.テつ Its shares hit almost $22 before falling to less than $1.テつ With so many legitimate companies and stocks to invest in, it is best not to chase riches in theテつpenny stock market just because you can buy a gazillion shares of a stock trading at $0.02/share – when the stock might be worth $0.

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