Article / Updated 09-12-2016
In some cases, a penny stock company will pay an analyst to produce detailed reports about it. While these reports can often be very professional and thorough, the fact remains that the company is paying the analyst for the review, which automatically casts a shadow of doubt on the value of the information.
The purpose of these paid analyst reports is to push the share prices higher, but instead of trying to pump up a stock through manipulation, these reports make an argument for why the shares should trade higher and that argument often has a great level of detail.