Matthew Brown, founder of the Investors Hub website, pleaded guilty this week to securities fraud for his role in pump-and-dump schemes involving four different penny stocks, StockWatch has reported. Together with six other defendants, StockWatch said, Brown allegedly manipulated the stocks through “prearranged trades that were timed to coincide with misleading news and posts on Investors Hub” and then dumped the inflated shares.

According to U.S. authorities, StockWatch said, the group pocketed more than $6 million in illicit profits as a result of the complex scheme. One of Brown’s codefendants, Gerard D’Amaro, is expected to plead guilty to similar charges next month, StockWatch said. Four others – Joseph Mangiapane, Pawel Dynkowski, Marc Riviello and Jacob Canceli – have pleaded not guilty, StockWatch said, while a fifth – Pawel Dynkowski – has yet to enter a plea in the case at all. Brown could have faced up to 50 years in prison for his own role in the scam, StockWatch noted, but he expects to receive a lighter sentence in exchange for his guilty plea.

• Be anonymous
• Use 10% fact. 90% suggestion. The facts will lend credibility to your suggestions.
• Let others help you learn about the stock. Build rapport and a support base before initiating your Bashing routine.
• Enter with humor and reply to all who reply to you.
• Use multiple ISP’s, handles and aliases.
• Use two (2) or more aliases to simulate a discussion.
• Do not
  start with an all out slam of the stock. Build softly.
• Identify your foes (Longs) and the boards “guru” Use them to
  your advantage. Lead them do not follow their lead.
• Only Bash until the tide/momentum turns. Let doubt carry it the rest of the way.
• Give the appearance of being open minded.
• Be bold in your statements. People follow strength.
• Write headlines in caps with catchy statements.
• Pour it on as your position gains momentum. Not your personality.
• Don’t worry about being labeled a “Basher”. Newbies won’t know your history.
• When identified put up a brief fight, then back off. Return in an hour unless your 
  foe is a weak in reasoning powers.
• Your goal is to limit the momentum of the run. Not to tank the
  company or create a plunge in the stock; be subtle and consistent.
• Kill the dreams of profits, not the company or the stock.
• Use questions to create critical thinking. Statements to reinforce facts.
• DO NOT LIE, NAME CALL or USE PROFANITY.
• Encourage people to call the company. 99% won’t. They’ll take your word for claims made. If they do call you can always find something that
  is inaccurate in how they report their findings.
• Discourage people from believing Press Releases. Encourage them to call the company. They won’t out of laziness.
• If the companies history/PR’s are negative constantly point to that. Compile
  a list of this data prior to beginning your efforts.
• If the price rises blame it on the hype or the PR, temporary mass reaction, the market, etc. Anything but the stock itself.
• If other posters share your concerns, play on that and share theirs too.
• Always cite low volume, even when it’s not.
• Three or four aliases can dominate a board and wear down the longs.
• Bait the Longs into personal debates putting their focus/efforts on you and not the stock or facts. Divert their attention from facts.
• Promote other stocks that would-be investors can turn to instead of the one your Bashing.
• 3Do not fall for challenges on the “values” of what you are doing, it’s a game and you are playing it with your own rules.

Online Share Brokers

Who is the best online broker? There are many factors to consider. We are comparing the performance of Online brokers. This table will be updated as more information is available.

1. OptionsXpress

• Fees/ Trade:
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

 2. Zecco

• Fees/ Trade: $4.5
• Free Trade:  10 free trades monthly with $25,000 Asset or after 25 trades
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

3.ETRADE

4.SogoTrade

• Fees/ Trade: $3.00
• Free Trade: 100 free trades
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others: Free virus scan
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

5.TradeKing

• Fees/ Trade:
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

6. tradeMONSTER

• Fees/ Trade:
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

7.ShareBuilder

• Fees/ Trade: $4.00
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

8. FolioInvesting

• Fees/ Trade:
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

9.Scottrade

• Fees/ Trade: $7.00
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

10. Schwab

• Fees/ Trade:
• Free Trade:
• Minimum Deposit:
• Withdrawal Fee:
• Contract Fee:
• Tech Support:
• Monthly Fee:
• Others:
• Website Speed:
• Website Userfriendly:
• Free Tools Available:

Note: We are not responsible for any errors in the data. If you have any objections or suggestion please submit through the comments. Investors are advised not to take this as a bench mark. We are not liable for any decision taken by you because of this information. Please do your research for your safety.

The terms “micro cap” stock and “penny stock” have been used to describe a particular segment of the securities market. As both terms suggest, these stocks are generally low-priced securities issued by small companies. A penny stock is generally a security that is priced at less than $5 per share and is not traded on Nasdaq or listed on a stock exchange. “Micro cap” stock generally describes a low market capitalization of less than 5 million when the number of shares is multiplied by the stocks price. Commonly Penny Stocks are also called Pink Sheets.  Pink Sheets is an electronic quotation system for a number of over the counter (OTC) securities. The name is derived from the color of the paper on which the quotes were originally printed. The Pink Sheets of today are published on the internet and the bulk of those listings are the so-called penny stocks.

It is possible that penny stocks can be traded on the regular stock exchanges, the companies that typically list in the Pink Sheets are the ones that are unable to meet the requirements of larger exchanges such as the Nasdaq and NYSE. The Pink Sheets do not have any listing requirements, allowing any company, even a company with no financial history, to be listed.

Due to the nature of the Pink Sheets, being an unregulated exchange, there is generally more of a risk to investors than stocks that are on the larger exchanges such as AMEX.

Advantages of Penny Stocks
Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. The low cost of Pink Sheet securities is the primary advantage that they offer. Investors who wish to get in on a new company at the onset can pick up stock for literally pennies. If a company does well and grows that initial investment can grow from pennies to much large dividends.

Pink Sheets do pose more of a risk for investors, though. A company may simply vanish, leaving worthless stock issues in its wake. If you invest in penny stocks, you should be prepared to lose it all. Because of this risk, Pink Sheet investments should only represent a small percentage of your investment portfolio.

A lack of liquidity is another risk to investors of Pink Sheet listings. The volume is usually very low and it can be very difficult to find a buyer for the stock. The seller may have to settle for a price that is much lower than initially anticipated just to be able to unload his or her shares.

There are some tips to help the penny stock trader avoid making costly mistakes.

Due Diligence
Stocks listed on the Pink Sheets don’t have to file annual or quarterly statements. This makes starting your due diligence difficult. Often, the information is sketchy at best, and typically, its biased. You should expect a shareholder to say good things about the company. If the company didn’t have potential, they wouldn’t be holding it. Or, they might be hoping to unload their shares and hope to talk you into buying.

Stocks listed on the OTC BB file annual and quarterly statements. This provides some measure of financial success. You’ll find most penny stocks lose money, whether through managerial incompetence, or research and development. The key is to identify the companies whose management has a record of consistently making money, or at the very least, delivering on their business plan, and decreasing expenses.

Check the voloume.  If the trading volume is less it will be difficult to unload the shares.

Do your homework, don’t believe the hype, and protect your capital.

Form 10K is the annual report filed by every company with a total capital of 100million. This  gives a comprehensive summary of a public company’s performance. Although similarly named, the annual report on Form 10-K is distinct from the often glossy “annual report to shareholders”, which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document). The 10-K includes information such as company history, organizational structure, executive compensation, equity, subsidiaries, and audited financial statements, among other information.

Companies with more than $10 million in assets whose securities are held by more than 500 owners must file annual and other periodic reports, regardless of whether the securities are publicly or privately traded. Smaller companies may use Form 10-KSB. If a shareholder requests a company’s Form 10-K, the company must provide a copy.

In addition to the 10-K, which is filed annually, a company is also required to file quarterly reports on Form 10-Q. Information for the final quarter of a firm’s fiscal year is included in the annual 10-K, so only three 10-Q filings are made each year. In the period between these filings, and in case of a significant event, such as a CEO departing or bankruptcy, a Form 8-K must be filed in order to provide up to date information.