Thursday, March 31, 2005

Send in the clowns.

But where are the clowns?
Quick, send in the clowns.
Don't bother, there here.

Over the past two weeks I've received three different investment newsletter type offerings via snail mail, shouting out things like "WHY YOU MUST BUY xxxxx NOW BEFORE IT TAKES OFF FOR 400, 500, 1000% GAINS!" and "xxxxxx ENERGY COULD SOON HIT $50".

They're pushing penny-type stocks.

I hate these things. I wouldn't go near them with a ten foot pole. Most of these eventually go to zero.

These 'newsletters' also blare the names and ticker symbols of these great picks, and so I suspect these are "pump and dump" schemes. They don't care whether I even subscribe, they just want me to take a look at the stock and buy some. Meanwhile, they bought the stuff back when it was 20 cents and are shoveling it out the door as quick as they can.

There's another guy published here with penny-type stocks. Again, I would stay away. Vestas Wind and Evergreen Solar? Sounds good right? Until you realize that both GE Energy and Siemens compete in both of those segments and the little guys appear not to be doing very well against them.

Additionally, with high gas prices, out come the crooks - er, clowns - with the 'amazing fuel saving device'.

Send in the FTC.

P.S. Put your penny-type money and your amazing fuel saving device money in a nice oil stock that you've actually heard of.