Registering Penny Shares

[pboyles]

All things considered, Arabian is right, I'm out of this thread too. I'd rather not be involved in any further advice about a company and situation I have no information on.

Ken - if you are still contemplating putting money in, ask yourself this, would you get in if you son was not involved in any way.
If the answer is no to the above question, nothing changes with a relative involved.

I recently had some dealings with people who had been caught in a share scam, they had lost tens of thousands of pounds each and some were rumoured to have lost over 100k. The shocking thing was that not all of them had been scammed by boiler room cold callers, some of them had 'invested' based on advice from trusted friends and family members. You can imagine how difficult this has made their home and family relationships.

You mentioned these are penny shares, I assume you mean that they are Pink Sheets or other OTC shares. These are prime territory for fraud, even if the company themselves are completely innocent. Like I said earlier they may even be restricted so that you cant sell them.

 

[Liquid validity]

I recently had some dealings with people who had been caught in a share scam, they had lost tens of thousands of pounds each and some were rumoured to have lost over 100k. The shocking thing was that not all of them had been scammed by boiler room cold callers, some of them had 'invested' based on advice from trusted friends and family members. You can imagine how difficult this has made their home and family relationships.

You mentioned these are penny shares, I assume you mean that they are Pink Sheets or other OTC shares. These are prime territory for fraud, even if the company themselves are completely innocent. Like I said earlier they may even be restricted so that you cant sell them.

All true, the OP says they are U.S. based so may end up as pink sheets or AIM if listed in UK - not even listed yet...
Penny stocks are news based punts at the best of times, and thats with a legit listing.

Anyway, no more from me. This is dodgy turf as it is.

 

[Ken2B]

Many thanks for the advice guys.

Liquid Validity

I would tell your son you would rather wait until they are officially listed, and ask him if would transfer some of his shares to you

This sounds like a very good suggestion and may be the way to go.

In answer to your other questions

Is your son being scammed as well?
Definitely not - I prefer not to go into detail but the answer is an emphatic "no".

How much do you know about the company?
A lot.
How much do you know about the other directors and their track records?
Yes and all is good.
Do you have any knowledge or understanding of the companies products or markets?
Yes and again, all is good.

It seems that nobody here would recommend this investment - even with "inside" information available. I take this on board.

Many thanks to the few who were prepared to expand on their advice and explain their reasons - this is always helpful ......especially to people, like myself, who have little or no knowledge.

Has anybody on this forum made any money with this type of investment?
(I know there will be a lot who have lost)

 

[Liquid validity]

Go and see an independent financial advisor and ask him
Don't forget even with a share transfer the SP can sink like a stone on flotation.
That really is it from me now.

Personally I wouldn't touch it, your choice though.

 

[arabianights]

If your son has been involved in this company for a number of years and so on then that changes things significantly....

(But makes the company's behaviour very ill advised)

 

[Ken2B]

Thanks for your input - I appreciate the advice.

You have all helped me come to a decision