The thing with penny stocks is that when the price increases by 10¢, its overall value may rise dramatically since its starting value was only worth a few cents. With a company like Google, a 10¢ increase or decrease in the price of their stocks is nothing, since each share is worth about $542. But if a share is only worth 10¢, then a rise of 10¢ effectively doubles your investment if you bought at the right time.
Now there are numerous so-called experts online trying to hawk their expertise in penny stocks, and one of them is Penny Stock Prophet.
Features of Penny Stock Prophet
The website of Penny Stock Prophet doesn’t really assuage concerns about its actual effectiveness. There’s nothing here that shows how effective the tips are, except for a “proof” video featuring the stock price of Integrated Cannabis Solutions (IGPK) as shown on the New York Times website.
On Friday, it closed at 17¢. By Friday May 5, it opened at 20¢ and reached 68¢. So if you bought at 17¢, at 68¢ you effectively quadrupled your money. (Right now, it’s trading at 4¢.)
But this proof video only proved what I’ve been saying all along: penny stocks are incredibly volatile. In fact, in their so-called proof video, refreshing the page showed the price dropping from 68¢ to 62¢ right away. That means the 300% profit fell to 253% in a matter of seconds.
The video didn’t prove that the Penny Stock Prophet was able to tip its clients to buy the stock at the right time. And the video even implied that they don’t tell people when to sell the stock.
On the site, you can give up your email address and get the next stock tip for free. If you want the VIP access, that’s $47. But at least there’s a 60-day money back guarantee.
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Let’s get right to the chase. You don’t have to subscribe to this service to know what’s going on. There’s no testimonial, there’s no explanation as to how the stock was chosen on the website, no offered analysis, and even no description as to who this guy is giving the tips. You just get tips about penny stocks from some unknown guy. But at least you get some sort of explanation on the newsletter you receive as to why the stocks were chosen. So why is this service even getting a score of 5? That’s easy: it’s because prices are bound to rise if there many people buying it because the newsletter said so. It’s that simple. But you have to act quickly. You have to check that the price hasn’t been moving up for some time already, because if it has then it may already be too late. Buy it on the way up, wait for a decent 30% increase, and get out. Basically, this penny stock tip service won’t hurt you (especially with the possibility of a refund). But there are so many other tools you can use which are so much better.
This review was written upon the request of Dan E. From the U.S
