The once hot penny stock, North Springs Resources (OTCBB: NSRS), just cannot seem to find the bottom dropping another -0.025 (-14.97%) to 0.142 at the time of this posting. People are emailing in asking if they should buy or sell NSRS almost every 14.2 seconds. Subscribers and readers of our frequent alerts were warned to avoid involving their money with NSRS after it had peaked at the $1.72 level earlier this month.
CEO of North Springs Resources, Harry Lappa, has been the center of the chat rooms and message boards after he created a multi-million dollar scheme as owner, sole employee of the company and rightful owner of all 696 million shares in NSRS in mid-2011.
NSRS 3 Month Stock Chart:
The allegations of NSRS being a scam were not voiced by investors who made money as the stock gained 2,347% from December to February. However the voices have become very outspoken for those investors who did not heed to the warnings of the eventual crash of NSRS.
Which leads you to this post and us to these points….
How do I find good quality Penny Stocks?
Investors must be able to decipher the difference between a good stock and a good penny stock. When you buy a listed stock you are buying a company that is owned by so many more people than a penny stock.
In giant corporations, items like executive pay, insider buying or selling, and how much waste is in the expense accounts of the income statement don’t matter very much.
In our world, these things are much more important. Think of a penny stock as a Family Owned Restaurant.
In many cases, one or two people run the entire company and even do the accounting and SEC fillings as in the case with NSRS and Harry Lappa. Investors must be able to decipher which company’s legitimately make or sell a product or service, and not just push paper around to sell shares to the public.
A good way to do this is to spend five minutes researching a company and if you can’t figure out what they do, make or sell, then forget about it.
How safe is my money in penny stocks?
As with any stock investment, YOU CAN LOSE ALL OF YOUR MONEY!
Never invest money you cannot afford to lose and Never invest anything without doing your own research and due diligence!
While we at AimHighProfits try to select the safest stocks to alert on, there is always a risk involved. Readers should carefully review the alerts thoroughly with their registered investment adviser or registered stockbroker.
If you find our information valuable, Subscribe to AimHighProfits Stock Alerts to receive our Alerts and Updates INSTANTLY and share this post/page with your friends and followers with use of the Social Buttons below.Share