14 Characteristics of Crappy Stocks from kcchongnz

[1]. Loss-making companies and mostly companies in a bad shape.

E.g. MTDACPI - losses almost every year and ballooning debts.  

[2]. Cheap penny stocks; price < 50 sen  which drop from higher price (RM1 or RM5) due to high losses every year.

E.g. MAS

[3]. Low NTA (Net Tangible Assets) per share. Poor quality assets - little value & don't generate much income.
E.g. AMEDIA

[4]. High gearing and high debts. High risk - high chance they could not service the debts.
E.g. KNM - 1B debt, little or no profit/positive cash flow.

[5]. Stay flat when market goes up, goes down even fasterwhne stock market goes down.

E.g. COMPUGT  

[6]. Generous director fees, allowances and bonuses irrespective of the losses of the company.

E.g. SMTRACK  

[7]. No Dividend - irrespective of profit/(loss) of the company.

 

[8]. Target of stock market syndicates
E.g. GLOTEC, SUMATEC, HUBLINE, PDZ.

[9]. Juicy stories and Market rumours - created by the stock syndicates to entice retail investors
E.g. HIBISCS - plenty of MOU, magic touch of Dr Kenneth

[10]. They are usually speculative stocks; they can go very high up within a short time frame. 
E.g. SUMATEC

[11]. Always ask for money - every few years there is a rights issue or private placement.
E.g. LONBISC

[12]. Crappy management - playing company stocks for profit rather than running the company for a profit, selling their assets to the company at high valuations, approving stock options to themselves.

E.g. MPCORP

[13]. Heavily promoted in stock market forums, stock market magazines, newspapers and even Facebook stock groups. A good story.......
E.g. SUMATEC. GLOTEC, KNM, HUBLINE, PDZ. 

14. Red chip companies
E.g. CSL, HBGLOB, CAP, XDL, CHOUHUA
 

References:-

• 14 Characteristics of Crappy Stocks kcchongnz (private)