Is this stock a penny stock doing a pump-and-dump scam?
This is what it says in Ameritrade.com it’s Argonaut Gold Incorporated Pink OTC Markets Inc:ARNGF
It’s price is rising it’s currently at $5.15. This company became available to stock market early 2010. It’s been rising since then has fallen a little but always went right back up and still is going up.
1) is this considered a penny stock?
2) Do you think it looks like a pump-and-dump scam going on here?
3) How come it doesn’t say small cap instead it says Pink OTC Markets ?
1. Depends on who you ask, generally market cap is the best barometer.
2. How can anyone answer that without performing due diligence? It’s not uncommon for pump & dump and a whole host of other gimmicks, but there are legitimate companies out there. Unless you are willing to spend lots of time and money just to figure out if this company is legit (including flying out to their location and observing them)*, what are their managements capabilities and are they in position to capitalize on what they claim then stay away from it. Even if you find one you like it takes freaking months to build positions or to exit them without drastically moving the price. Then crossing your fingers (along with executive officers) you hope that some schmuck doesn’t get the grand idea to put out a sell order for his position just because the stock jumped $1, only to watch those paper gains turn to losses.
3.Pink= Pink Sheets, OTC= Over The Counter. By saying a company is Pink it automatically means they are trading OTC, as they aren’t listed on an exchange and don’t have to meet/maintain the requirements for listing.
* It’s not uncommon for people to list fake addresses at “good” locations and small firms to do the same thing by listing a ups store box as its physical address while operating out of a bedroom nowhere near that location.
(OTC) KATX Penny Stock Video Update 08/04/2010