Brace yourself. Someone is finally going to tell you the painful truth about Doublingstocks.com and their stock picking service.
Without going into any dramatic wording designed to get you on the edge
of your seat, I'm guessing you've seen or heard of doublingstocks.com ?
Well, the site has created quite a buzz during early 2008. There is a
lot of hate and discontent being expressed by people who signed up for
this service.
I signed up for their newsletter a few months back. I'll give you a
quick rundown of a few of the stocks they selected and the immediate
results:
So, why exactly do ALL of their picks go down? It's simple. If you read
the fine print in the disclaimer, you'll see that doublingstocks.com is
compensated by each company's stock that is recommended. We're talking
big bucks here folks, like the tune of $100,000.
Now, why would a company want it's stock promoted by doublingstocks.com if it's virtually guaranteed to go down?
The thing to understand here is that these individual companines could
care less if their stock price plummets short term. The reason they are
paying a third party (doublingstocks) to promote their stock is a dirty
little word called....
Dilution! Dilution! Dilution!
Dilution is when a company issues brand new shares on the open market,
thereby vastly increasing the amount of available shares. This will
stunt any positive momentum in stock price and lead to a sharp decline
within hours or even minutes!
There's really nothing unethical about it from the company standpoint,
since the point of being a public company is to acquire capital through
selling shares. However, in penny stock land, this leads to a dramatic
drop in share prices....and fast!
So when those poor unsuspecting subscribers buy the new stock
recommendation from doubling stocks, they are really buying brand new
shares that have never been traded before.
It's really a simple lesson of supply and demand. If supply of a stock
is low and there is a high demand, prices go up fast. If supply of a
stock is high and demand is high, prices will stagnate as the new
shares are being sold.
Once traders see the price struggling to rise, most will simply lose
interest and sell their remaining shares for a loss. That's when the
real carnage starts. Declines of over 50% often occur within just a few
days when dilution takes place.
This situation has also been coined as a "pump and dump" scheme, where
the promoter "pumps" the stock to investors & the company "dumps"
more stock into the open market.
So, is there a solution to this dilemna? Is there any real penny stock
picking services that yield positive results for their subscribers?
That's what I want to explore with you....
Sign up below for a no-nonsense guide to getting started with Microcap
(aka penny) stocks and I'll show you a way to make huge profits without
getting burned by dilution schemes.
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