Even the casual investor knows that penny stocks are inherently risky. That risk increases as the price of the stock decreases. Most investors understand that they can lose money say 10, 20, or even 30%. But if you were to utilize stop and limit orders the potential for loss/or gain could drop dramatically. But that is a topic to be discussed another day.
For an investor in Axia Group ( AXGJ ) a 30% loss is a drop in the bucket. The stock has plummeted at an alarming rate with little or no bounce along the way. Just recently had a very rare up tick to $.0003 before falling hard. Today AXGJ dropped to the land of unwanted stocks. The bid disappeared. No one wants to buy this stock - not even for $.0001. There are plenty of investors looking to sell out at .0001, and I imagine anyone buying this stock is only getting more freshly printed shares of this literally diluted to death stock. What happened here? Who is to blame for misleading investors into buying this stock? Before I try to answer any of those questions take a look at another stock. MHUS aka aptly named Microholdings.
Can you believe people were buying this stock for $.04 and $.05 last November just like AXGJ? OK besides both of these stocks plummeting and having no one bidding for shares at $.0001 what else do they have in common?
They both have the same CEO. Someone should fire this guy... wait he's the CEO. His name and contact information for Microholdings ( MHUS) :Jeff Flannery, (619) 466-4701 jwfworld@yahoo.com.
Name and contact for AXGJ: Jeff Flannery(619)466.4928(619) 466.4701(619) 988.5869 jwfworld@yahoo.com
Please try these numbers and email address. Contact any of the numbers or email addresses on the misleading PR's of these companies. You will not get a response. These two companies represent why they say you can lose all of your investment. This crook wants nothing more than your money and now he's got it. He's run both of these stocks into the ground through dilution. His basic strategy is to sell shares until no one wants to buy the stock anymore.
It is a lesson any penny stock investor learns. Unless you are buying for a momentum play, don't buy and hold any penny stock that you don't know 110%. Sure you could have made money in these companies. But if you didn't sell and still hold shares you likely are out of luck. Chalk it up as a lesson and move on.
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