Press releases are a means by which companies can keep the public informed about their recent cases. It is the duty of every public company to its investors and indirectly potential investors aware of what is going to hold in the company. It should not be forgotten, however, that the increase. In the ultimate interest of the company for the price of the share Consequently, companies are increasingly selective about what and how information is presented in such releases.
Your mother always said, "If it sounds too good to be true, then it probably is." This popular saying is particularly true with respect to press releases penny stock companies'. Certainly all press releases are optimistic, otherwise companies would not release them. But if we look to invest in a company, be aware of overly ambitious, optimistic and unsubstantiated press releases. A company with sales of 10 million and 11 has had for the past two years and that claims will bring better a darn good reason. Turnover of 40 to 50 million next year Examining press releases by breaking down the argument underlying logic is an excellent way to uncovering reasoning that deliberately muddled than it seems to be better. For example, if a company says its software sales increased by 300% in the past year, but do not indicate what percentage of their total sales was composed of software sales, are suspect. If not to implement a company lay out a detailed plan of how money and increase profits will, it is likely that their only source of income is selling worthless shares to sucker investors.
Another diversionary tactic often employed by Pink Sheet Stocks, but which are also used by OTC-BB stocks, is ambivalent about their filing status. These companies know that one of the surest ways to increase the price of the shares and thus the profits of the investor if the stock is recorded at a higher exchange. (That is, the OTC-BB for Pink Sheet stocks, for the NASDAQ OTC BB, etc.) Through this knowledge, unscrupulous marketing companies or even the companies themselves are showing that they will either submit or have submitted financials loose and paperwork needed to apply for another currency. This release is usually followed by a sharp rise in the share price, and then ... nothing. If pushed the company generally makes up some garbage about how for some reason now not a good time to file after all, but she was genuinely trying to do all along. The reality is, they were driving up the price so they could dump the stock and make a killing unsuspecting investors.
Unless you know 100% sure that the company has actually hired the staff and then physically handed to evaluate the financials should you follow this simple advice:
If a company says = what it really means is
We plan on submitting this quarter = We plan on selling our shares this quarter.
We have filed with the SEC = We will soon be investigated by the SEC for what we are currently doing.
That is not to say, however, that you generally do not rely and act on press releases. A kind of positive Press Release of particular interest to Penny Stock investors as a small company announces that it signed an exclusive agreement with a larger firm to perform a function or service for that company has been committed. This kind of press release is particularly important for potential investors for a number of reasons. The first is that unlike the ads that optimistic prediction about the future, this kind of announcement is controllable by the partner company. For example, if ABC Internet Technologies Company signs an exclusive contract to supply with its accounting for the next five years, General Electric, you can rest assured that the price of ABC Internet Technologies Company will skyrocket. To check the announcement please contact the GE more established, which also provides information on the agreement to let go. Some of the most relevant information, the scope of the contract, the exit penalty of GE, as well as the expected initial investment on the part of the Penny Stock Company. This will allow you to predict the new valuation of the company and use this information to determine your plans for buying and / or selling the stock.
Another potential windfall-esque discovery under press releases is on the front of that discovery to give an undertaking that was scheduled to bankruptcy to stay an agreement with creditors reached earlier release. The assertion of bankruptcy is a very real threat to some Penny Stocks, and as a result usually the price of such stocks is trading at only about a penny, because if the company goes under shareholders lose their full participation. If a company is able to avoid bankruptcy, the price usually many, multiply many times over offering early investors the opportunity to put their money 10 or 20 times more than multiply in less than a day. (Not bad for a day's work, eh)
The key to understanding press releases is the ability to act on two contradictory thoughts simultaneously. Remember that the Penny Stock market, because the institutionalized less is often more about predicting the emotional and erratic behavior of your fellow investors rather than simply making the following rational and logical decision based on the figures. In this sense, to formulate. Important when reading a press release to consider how your fellow investors the information initially will interpret, because this will come to many of the original direction and drive the stock But it is also important to consider more closely the Press Release. If you find that the company seems to leave out important information seems to completely avoid the stock. Muddling numbers and percentages, or uses one of the cries for standard scams, Even if you 'fellow investors initially drive up the price of the stock and you think you might have been at the top of the rising wave, you can not be sure if the scam will hit. You can have no idea of inside investors are planning to dump their stock 50% 100% or even 200%. And although you may be able to earn a profit or twice by playing the game to ensure that over time you will recommend, sell too late, and be stuck holding thousands of shares worth less wrong than the paper they are written on.
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