Here are some things that you should look out for when researching about a microcap company and its penny stocks.
Warning signs about the company
Suspensions from the sec If a company reports inaccurate or unreliable information with the SEC, it can be suspended from trading for up to ten days. Reconsider your decision to invest if the company has been given a trading suspension.
High pressure sales tactics If a company or a broker is pressuring you to buy penny stocks by telling you about what they describe as a once-in-a-lifetime opportunity based on inside information, be suspicious. The hard sell to buy these stocks even before you have had a chance to investigate should tell you that there is a hidden motive somewhere.
Large assets but small revenues sometimes, microcap companies assign high values to supposed assets, which actually have nothing to do with the business at all. If a company has low revenues but large assets, find out if there's a valid explanation for the low revenues.
Odd items in the financial statements The footnotes of the company's financial statements may indicate unusual transactions such as unusual loans or exchange of questionable assets for company stock. This may be part of a penny stocks fraud, so if odd items appear in the footnotes, be wary.
Auditing issues If a company's auditors refused to certify the company's financial documents or stated that the company may not have enough money to operate, the penny stocks sales may involve fraud. Another suspicious auditing issue is when the company changes accountants often.
Shares of stock owned by company insiders Pump and dump schemes are likely to happen if the company's officers and promoters own large amounts of stock. When the company's officers and promoter control most of the penny stocks, they can easily manipulate the price, and this is not good. Ask your broker for more information but if this is a scam, you won't be getting a truthful answer.
Warning signs about the promoter or market maker
Be extra careful in dealing with brokers and cold calls. Make sure the broker/dealer is someone you can trust. Cold calls from strangers whom you don't know from Adam should ring a warning bell in your head too.
* If you are dealing with a broker and he refuses to provide you with written information about the company whose penny stocks he is promoting, back off; this is likely to be a fraud.
* Don't give out your social security number, or your bank account and securities account information, especially to a cold caller.
* If anybody, especially someone whom you don't know very well, recommends or tries to cajole you into buying foreign investments, don't fall for it.
Multiple Sclerosis Warning Signs
It's not always obvious when your partner is cheating on you, some infidelity warning signs are just very subtle changes in your partner's behaviour. Everyone is different and how one person handles such a delicate situation can be completely different to another. A successful gambler for example could probably cover their tracks far easier than a person who is normally far more open and transparent in their behaviour.
Infidelity warning signs can differ greatly from one relationship to another but one common thread is that something, no matter how small or how subtle, will have changed.
If your partner has suddenly changed, maybe become more remote or less intimate and you have that funny feeling that something isn't quite right then you might want to look for some obvious signs that your spouse is cheating on you.
Perhaps mutual friends have started acting differently towards you, less friendly, can't look you in the eye, avoid coming round or no longer want to discuss family issues. If so raise the question, as if there is something wrong, just do a little digging without letting on that you have your suspicions and just see how uncomfortable they become.
If your partner is spending more and more time away from home just start asking questions, nothing obvious but show a keen interest in how their day has been and what they have been doing. A cheating spouse will find it more and more difficult to be involved in such a conversation.
Other infidelity warning signs could be:
• A sudden urge to get fit, always at the gym but wants to do it on their own.
• Longer working hours, unexplained changes in working patterns or an increase in the number of nights away from home.
• A new cell phone that you don't know about or an reluctance you let you near their existing phone. Becomes possessive about phone calls, deletes messages or starts using nick names in their phone directory.
• A need to get to the mail first or an sudden eagerness to answer the phone.
• Your partner starts leaving the room when they are on the phone.
• Suddenly takes and interest in new clothes or a heightened interest in their day to day appearance.
• Becomes defensive, avoids conversation or appears uncomfortable when asked about their day or where they have been.
• Acquires an unusual interest or knowledge about local pubs, hotels or attractions.
• Stops wearing a special / symbolic item of jewellery or even their wedding ring.
• Finds any excuse to leave the room or the house.
• Stops going to bed when you do or starts spending long hours at the computer.
• An increase in the amount of cash withdrawn from your joint account, a new bank account or an unexplained shortage of money.
• Weird phone calls whereby the caller keeps hanging up but it only happens to you.
Some of the more transparent infidelity warning signs are such things as the appearance of little gifts that weren't purchased by yourself or your partner, regularly smells of a perfume or aftershave that isn't yours. A cheating spouse may carry condoms when you don't use them as a couple or start having showers as soon as they arrive home.
The list is endless with many of the infidelity warning signs being subtle in nature and also an indication of something totally different such as stress, depression, boredom or early signs of illness. If you believe your partner is having an affair don't just jump in with guns blazing, do your homework, confirm your suspicions 100% before doing something you might regret and possibly destroying your marriage.
Both Nir Dotan & Terry Ross are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nir Dotan has sinced written about articles on various topics from Argentina Travel, Penny Stocks and Pink Sheets. Nir Dotan is a writer and promoter of services, and Prefer. Nir Dotan's top article generates over 74000 views. to your Favourites.
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