Many of these premium sites do a good job of chalking up gains for their readers, don’t get me wrong. What you should be on the lookout for are sites that do nothing more than take your money each month and regurgitate the same info you can find on the web or in other newsletters for free.

Not to pick on one particular premium newsletter, but take a look at the history of picks of this premium penny stock newsletter. It’s interesting enough that they only list the picks that were made later than a year ago, I will get to that in a minute. What you should note is that of the last ten picks listed in this history, eight of them were actively promoted during or very close to the time they passed them to their paying readers and were identified at the same time by several fee, unbiased resources . You can verify this yourself, for free I might add, using many of resources on the web that keep folks up to date on promotions and their performance free of charge. I checked stockpromoters.com in writing this post, which happens to be one of the most comprehensive sources of information on the web for promotion information. The Pump and Dump’s Nightly and PennyStocks24 are also great, informative resources that come to mind.

You could argue that the true purpose of a premium newsletter is to cut through the garbage and give you an expert unbiased opinion on which promotions are going to make their readers money. Unfortunately for many sites like the one in this example, the jury is out. Did you notice the fine print in the pick history that says “the high prices listed are the highest price the stock traded at, no more than one year after the stock was profiled”? This is all too common with premium sites. One year? Keep in mind that many promoted stocks, including the ones listed in their history, are promoted multiple times. Nice that these folks get more than one shot in their revolver, huh? Also anyone insinuating that a position in a promoted stock should be held for a year is not only naive but also irresponsible.

Are there premium newsletters out there that are worth your money? Absolutely. Just be sure that you aren’t buying “bottled tap water” before you hand over your credit card. Also, keep in mind that there are great free penny stock resources on the internet that are worth your time. Our free web site highlights penny plays that we think may interest you and follows them on our real time dashboard until the next market close. And no, we don’t expect folks to hold their positions for a year. Check us out.

Happy Trading,
-Russ