Last week I started posting about a site’s free hot penny stock picks to demonstrate whether their accuracy would be useful or if they were making penny stock picks based actual research. Many of these penny stocks lists are nothing more than pump and dump scams so it pays to do some due diligence.
For those who do not know, a pump and dump scam is when a stock is purchased, overly hyped to investors to artificially inflate the value, then dumped by the original owner and originator of the hype. This in essence drives the investors money into the pocket of the ‘pumper.
Well, last week we were given three penny stock picks and I will now review them and see if money could have been made up to this point.
CMLT: CMLT was recommended last week at it’s closing price of .001. Today CMLT closed at .003 for a 300% gain (not including the intraday fluctuations that could have netted a larger gain.
PTSH: This penny stock was recommended last week at it’s closing price of .0014. Today PTSH closed for .0013, giving it a loss of 7%. Again we exclude the intraday trading, but see that .0014 appears to be a cyclic top and less likely to break out. Probably not worth holding.
MIRA: And finally, this penny stock was recommended at it’s closing price of .04. MIRA closed today at .045 for a 12.5% gain. Not substantial, but still a gain.
Overall, if we have diversified investments we would see an average gain of 101.8%. I have to admit that I am intrigued and will continue this experiment by looking at the next three recommendations:
TNRI which closed at .0032 today.
SOYO which closed at .4 today.
RPDM which closed at .0027 today.
On Friday we will take a look at all 6 and see how they performed. If everything maintains this kind of consistent behavior, then we may have some hot penny stock picks on our hands.