curritThere is NO free lunch, I think we all know that. And while this site was created to provide you with information as you decide on your future investment and/or lifestyle, doing your own due dilegnece is still important. Due Diligence is a a term we've all probably seen scattered around the net and in various financial forums, but what exactly is it?
A web search shows the following:
Due DiligenceThe process of checking the accuracy of information contained in a company public statement, such as a prospectus, before recommending that company to others. Is also the act of one company investigating another company before buying its shares.
Due DiligenceA term that covers the process of discovery into the risks and value of a business that is to be purchased. The usual application of the term is in confirming that the financial and record keeping aspects of the business are as represented. Sometimes called the "book check." This process usually takes place after an offer has been made and accepted, but prior to closing. But, more broadly speaking, it refers to the complete analysis of a business to assist a buyer in making decisions about the purchase. Examples could be a review of corporate records, agreements, financing arrangements, employment issues, insurance information and legal matters. This term can also be applied to the seller evaluating the buyer. If the payment is deferred or contingent, the seller should investigate the buyer's business reputation, financial strength, credit history and plans for the business.
Let's take that definition and revise it somewhat for the HYIP arena.
Interest Paid
While we are all seeking the GREATEST return on principal, let's be realistic and look for a reasonable amount. Past investment experience has shown that if a program offers more than 3% a day, there is a good possibility it is a ponzi scheme, or that it will not last. Be careful with any company offering more than 3% daily.
How much to invest?
Typically, if you are reading this, you are a small to medium level investor. Therefore you should look for program that suits your needs and temperament. On the norm, longer lasting programs will have investment minimums in the $10 to $20 range.SAGE ADVICE: Never invest more than you can afford to lose.
Who is the admin?
While the Internet gives us free access to a tremendous amount of information, it alsp provides anonymity. See what you can find out about the person and/or company. Most HYIP do not provide a great deal of specific information about he people behind the company, but find out what you can either directly or by reading the forums.
What does the website look like?
Is it professionally designed?
Is it on a paid or free host?
Realize that someone can throw up a site in a few hours for little money and with no intent of staying around for the long haul.
If the site is professional looking, has their own domain (not geocities, etc.), that is a vote of confidence
What can you find out about the site and the admin in the whois records.
http://www.nic.com/
http://www.whois.sc/
http://www.accesswhois.com/
Contact Info
Does the admin return your e-mail?
Does the mail get bounced? (strong warning if that happens)
Read the Forums
While anyone can (usually) post in the forums, this is a good place to gather more information. Attempt to post something, even if it is a simple question. If you find the forum is "locked", that should IMMEDIATELY send up red flags.
Go back and read some of he older posts, find out if there have been problem and if the admin responded in a timely manner.
Bite the bullet
Once you've looked into the company, read the information on this site, decided how much you can afford to invest, it's time to move forward.
One thing is certain, if you do not invest, you cannot profit.
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