Q: Who are your subscribers?
A: We believe most of our subscribers are investors and traders. We also believe
we have an increasing number of stock brokers, investor relation firms, and possibly
institutional firms signing up as well.
Q: What type of traffic are you getting on your site?
A: The number of subscribers signing onto our site per day is highly dependent on
how well our stocks have performed after they were profiled on our site. Currently, we are
averaging about 20 new subscribers per day, though this average fluctuates on a monthly basis.
Q: I have never invested in stocks before, where do I start?
A: First you have to set up an account with a brokerage firm.
There are numerous brokerage firms and discount brokers to choose from.
You can use the search engines on the Internet and type in "discount
brokers". Select one that fits your investment style. If you decide to
buy stock of any of our featured companies, you may want to use a discount broker that
trades OTC Bulletin Board and Pink Sheet stocks, since we do profile these. Another comprehensive site is
located at: http://www.nasd.com. We like to alert our subscribers that penny stocks are high risk
securities and are extremely volatile. If you decide to trade these type of securities
we encourage our subscribers to use ONLY high risk capital. We try our best to clearly
state this in our disclaimer.
Q: How do we invest in your featured companies?
A: We suggest for you to conduct your own due diligence on our stock profiles
and/or obtain advice from a registered securities representative before making any purchase.
Information that we report on a company is not to be construed as a solicitation or
recommendation to buy or sell securities.
Please read the information in our disclaimer. As with any penny
stock, invest with caution. Investing in any penny stock involves a high degree of risk
and volatility. There is a chance of losing your entire investment. If you decide to
invest in our featured companies, we highly encourage our subscribers to make a purchase with a limit order
and not at the market price. Traders/investors have gotten highly discouraged with
stocks profiled on other web sites, since they placed orders to buy at the market price (i.e.,
sometimes buying at prices higher than the ask price). Remember that when placing an
order at the market only guarantees execution of the order and not price. Whereas, a
limited order guarantees a price, but not an execution. A very important difference.
Q: What causes the rapid fluctuations or gyrations in stock prices shown on daily
trading patterns (intraday trading) not just for penny stocks, but for all stocks in
general?
A: There is no one clear answer that will explain the causes for the volatility of
intraday trading patterns for all stocks. Intraday trading is generally controlled by
market makers. By and large most MM don't have a clue nor do they care to learn, about the
fundamentals of the stocks they trade. If the Company has solid fundamentals and a bright
future. Then the stock will do very well. And the activity that caused the situation will
prove to even help the future stock activity because it created an audience.
Q: Have you ever received compensation from a company?
A: If we are approached by a company representative or an investor relation
firm and are asked to profile a publicly-traded company as a featured stock, it
first has to meet our criteria. This way we can maintain an
unbiased opinion regarding our profiles. We work tremendously hard at gathering and
compiling information from various sources (i.e., investor relations material and
sources on the Internet) in order to write a clear, concise and comprehensive report.
As stated in our disclaimer, the accuracy or completeness
of the information on this web site is only as reliable as the sources they were
obtained from. We remain extremely cautious in this business and will only conduct
business with investor relation firms and companies that are in full compliance with
the SEC. StockChartist.com will file a compliant with the SEC if they are approached by
any company that appears to be involved in any fradulent conduct. Also, we will fully
cooperate with the SEC if ever questioned about a profiled company.
Q: Does your company disclose the amount of compensation they have received
for profiling a company?
A: Yes, in order to be fully disclosed with The Securities Act of 1933,
Section 17(b), our compensation is fully disclosed in the disclaimer of all materials
released to our subscribers and on every report within this web site. We indicate the
amount of payment, source of payment, and the type of payment (i.e., cash or company
shares) if any.
Q: A few of your featured companies make a run for a short period of time, but
the long-term trends aren't there. Why is that?
A: Refer to our Technical Analysis - Approach
section write-up. Technical analysis is considered more valid for predicting the
short-term movement in stock price (one day to one month) and less reliable for the
intermediate-term (one to three months). Our Archives section
generally displays stock price movement for the short-term. In our opinion, it is not as
reliable for long-term trends (greater than 3 months), especially for penny stocks. Through
our experience in trying to determine what a penny stock will trade at in a year from now
(yearly target prices) is impossible. Other stock and market analysts on related web sites
try to predict long-term trends, yet no consistency is found with their results and therefore
they often fall short of their yearly target prices. There are just too many unforseeable
factors including but not limited to change of business plan, change of management,
decrease in productivity, increase in competition, etc., which can influence what a company
will trade at after the initial profile.
Also, a lot of the companies we profile are
Internet-related companies, which may not show a profit for a while and trade at share
prices based on their potential and not value or what they are worth. Many large Internet
companies still don't make a dime of profit and trade at high prices, and are highly
speculative. In our reports, we sometimes include a long-term target price. This target
is just an estimate (or best guess) of what the stock price may achieve if the company
accomplishes all objectives and goals as initially stated in their business plan (which is
provided to us), and meets their financial projections. But, even then there is no
quarantee that the company will trade at our targets if they even meet all their goals. Also,
we have no way of knowing if a company will attempt to accomplish everything that is stated
in their original business plan or if follow-up press releases are accurate. Press
releases we receive and use in our reports are "forward looking statements". What a company
can accomplish is 100% in the hands of the company, and is totally out of our control.
We only disseminate the information that is given to us. We are paid to advertise for a company,
in just the same way you advertise your business in the newspaper. We are that medium on the
Internet to help companies deliver their message of what they are all about. As stated in our
disclaimer -- "The accuracy or completeness of the information on our web site
or within our reports is only as reliable as the sources they were obtained from."
Q: Does StockChartist.com guarantee a certain profit that a subscriber can make
from their initial investment?
A: No, we do not guarantee any profit will be made. Please read the information in
our disclaimer. As with any penny stock, invest with caution.
Investing in any penny stock involves a high degree of risk and volatility. There is a
chance of losing your entire investment. We would like our subscribers to be aware of any
web sites or any other form of electronic dissemination of information that guarantees
you will make a certain profit. On May 12, 1999, the SEC published an article that
involved Internet fraud of this nature at
http://www.sec.gov/news/nets0599.htm.
As quoted from the article concerning 14 cases, "Each involved the sale or marketing of
securities via the world wide web and each contained outrageous or baseless promises to
investors, in some instances guaranteeing annual profits exceeding 100% or even 2000% of
an investor's initial investment."
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