Never Trust OTC Stock CEO’s | Learn To Trade Penny Stocks
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Hey everyone! Today’s video lesson surrounds the idea that you should never trust a companies CEO. I know everyone is hyped up about the potential $OMVS and RAD merger, but keep in mind that they’ve already claimed it was going to happen on August 10th, and released news that it was being pushed back on that day.
I’m not sure if you guys remember the Enron scandal, but it’s a billion dollar company who had a huge fraud scandal. The day before bankruptcy, the CEO came to the public and said “nothing is wrong, our company will be fine!” which was obviously a lie. And, of course he knew that he was lying when he said it, his job is to protect the stock price! That’s why you need to consider CEOs as the ultimate stock pumper. Their entire job surrounds around pleasing investors and stockholders so they definitely will not say anything harmful towards the company!
Now with $OMVS, last time around they were claiming with 99% certainty that the merger would go through. The key thing is that whenever asked, they never specified it would go through “on the 10th” they simply said that it would go through. No one paid attention to that key detail, and when I was warning everyone on August 9th to wait until the next day to buy on confirmed news, I got a WHOLE bunch of hate from the typical Twitter pumpers who were calling me a fraud and “I just wanted cheaper shares” (lol) Sure enough, the next morning they released a fluff PR and in the small text it said the merger was delayed until the 31st and the stock crashed from .26 to .16.
I did the same thing today and warned everyone on Twitter and InvestorsHub that there is no point of buying before the merger! It’s a complete 50/50 shot and is terrible risk management. Just wait until the news is confirmed, and then buy! You may not get as good of an entry as before, but you are 100% sure that the news is confirmed and it will drive the price up.