Message Board Predictions for Penny Stocks
by John Whitefoot for Peter Leeds, Inc.
NEW YORK(rushprnews) August 13, 2007 – One of the first things I do every morning is check my favorite news site online. On the main page, just to the right of the major news headlines of the day is a link advising me to check out my daily horoscope.
And Iâ€™m certainly glad I did today. Apparently, I need to “cheer up as positive change is in store for me.” Words to live by! Yet, inspite of the good fortune that is obviously coming my way, I think I should still tread gently. At the bottom of the horoscope page is, of all things, a disclaimer. Believe it or not, my daily horoscope is for “entertainment purposes only.”
Now, if Iâ€™m reading the disclaimer properlyâ€¦and I think I am, I probably shouldnâ€™t base any major life decisions on what I read in my daily horoscope. In fact, it sounds as though I should proceed with caution.
Most people I know donâ€™t take their daily horoscopes to be gospel. At the same time, I have friends and acquaintances that do not use the same discretion while reading financial message boards (Yahoo!, Big Charts etc.).
And really, if thereâ€™s one place where people should tread with cautionâ€¦it’s financial message boards. You may not bet the house on your daily horoscope, but I guarantee some people have lost just as much, if not more, thanks to an asinine prediction, by an anonymous poster, on a financial message board.
Granted, financial message boards do have disclaimers at the bottom of the pages. This one comes, in part, from Yahoo!, â€œThis board is not connected with the company. These messages are only the opinion of the poster, are no substitute for your own research, and should not be relied upon for trading or any other purpose.â€
Still, it seems fair to suggest that some do not heed the warning. Log into the message board of your favorite penny stock and youâ€™ll probably come across a number of anonymous entries with dubious opinions telling you to “Load the Boat” or “Get Out While You Can”.
Regardless, on the other end is an investor hoping to either pick up your stocks on the cheap, or hoping you pick up their stocks at a premium. Either way, as penny stock investors you need to read and proceed with caution. Because you never know whoâ€™s on the other end.
And donâ€™t think slick message board posters are unique to penny stocks. They arenâ€™t. In July, Whole Foods Market Inc, CEO John Mackey came under scrutiny for posting anonymous messages online.
Mackey wrote anonymous messages on Yahoo! Inc.â€™s financial chat boards from 1999 to 2006 using the name “rahodeb.” Some of his comments praised his companyâ€™s performance while others criticized his rivals, such as Wile Oats Markets Inc, which Whole Foods is seeking to buy.
Clearly with too much time on his hands, “rahodeb” even had time to reply to a poster who made fun of Mackeyâ€™s haircut from a photo in the annual report. “I like Mackeyâ€™s haircut,” rahodeb said, “I think he looks cute!”
Granted, penny stocks are more prone to message board scams. Not because penny stock investors are more gullible, rather, companies tend to have smaller float and be thinly traded. In some cases, you only need a few shareholders to act on a message board posting to manipulate the share price.
Not too long ago I was reading about a suspected bank robber who was helping a fugitive convicted of bank fraud, and under house arrest, manipulate penny stocks. Whatâ€™s better, while under house arrest, the ex-bank executive was free to pursue his business dealings.
The point is, message boards can indeed be a legitimate source of information. Unfortunately, they can also be home to others with nefarious intentions. While a court of law may say youâ€™re innocent until proven guilty, you cannot hold anonymous, online forums to the same moral code.
Never assume people are who they say they areâ€¦or that their message is true. Do your own due diligence researching penny stocks. Whether itâ€™s a message board discussing penny stocks or your horoscope, proceed with caution. Follow my sage advise and I can (almost) certainly predict your life will (probably) be less stressful and (maybe) even more lucrative.
About Peter Leeds:
Peter Leeds, CEO of peterleeds.com is also a successful book author. Leeds is widely known in the industry as the Penny Stocks Pro, a reputation built on giving clear and informed financial guidance based on years of investing in penny stocks, a passion that started at the young age of fourteen when he invested and lost the hard-earned sum of $3,800.
From this modest beginning to today’s own financial success, Leeds learned by mistake and developed LEEDS ANALYSIS, a proprietary system of analysis which enables him to pick winners in the penny stock market and make suggestions in his newsletter. Leeds has helped thousands of others achieve their dreams of greater wealth by subscribing to the PeterLeeds.com newsletter.
To find out more about Peter Leeds’ services and to secure an interview with him or to speak with one of his subscribers, contact Leeds’ publicist Anne Howard at 310-295-9578 in LA, or in Canada at 514-523-3771. You may also write Anne at email@example.com .
Peter Leeds, the penny stock pro at www.peterleeeds.com
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