Posted On: 04/15/2015 2:12:53 PM
Post# of 43066
Re: PaperProphet #19239
You hinted at something that I found interesting.
There are hundreds of penny stocks like PTOI. Penny stocks that in addition to having no value, have been publicly exposed as microcap scams via an SEC fraud action and subsequent settlement. Yet these companies typically continue to trade (thinly) at multi-million dollar market caps for years as they ever so slowly fade away.
So who is it that keeps these microcap scams going for years, and why? Clearly there are some "gamers" who like to gamble on the price fluctuations of these penny stocks, in complete knowledge of their histories of fraud. But that probably only accounts for some small fraction of the trading.
Is it your hypothesis then, that a lack of knowledge by microcap investors about SEC actions contributes significantly to the longevity of these post-settlement microcap scams?
There are hundreds of penny stocks like PTOI. Penny stocks that in addition to having no value, have been publicly exposed as microcap scams via an SEC fraud action and subsequent settlement. Yet these companies typically continue to trade (thinly) at multi-million dollar market caps for years as they ever so slowly fade away.
So who is it that keeps these microcap scams going for years, and why? Clearly there are some "gamers" who like to gamble on the price fluctuations of these penny stocks, in complete knowledge of their histories of fraud. But that probably only accounts for some small fraction of the trading.
Is it your hypothesis then, that a lack of knowledge by microcap investors about SEC actions contributes significantly to the longevity of these post-settlement microcap scams?
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