I can assure everyone that about 95% of the stocks on the pink sheets are scams (meaning no real biz, reverse into public shell, nothing but hype). Bulletin Board, prob about 40% are scam type, but since you have to be reporting, less so. Most of it has to do with actual business prospects and what you can earn per share.
That is all stocks trade off of - EPS OR what another company would purchase your assets for. Most penny stocks, especially on the pink sheets, have billions of shares outstanding, and they continually issue more. They pay rent, salaries etc all with issuing stock. This is never disclosed of course. Tell me this - a company with 50 or 100bil outstanding (this is common on the pinks) shares, how would they earn even .01 per share. - well the answer is the NET income would have to be 50 million dollars or 100 mil.
Most of the time, even if these companies captured 100% of any possible revenues and income in a sector they are in, they could never make that much. Some of their competition is in the sp500 etc - you actually think a company with 14k in the bank and an idea is gonna take out a huge conglomerate that is in that space - if you believe that, I have a bridge to sell you. If a large company with hundreds of millions in cash cannot make that much in that market, how would a tiny unknown company?? And this is just to earn .01 per share.
This is not to say they dont move, and you cant make a buck here or there, but from someone who has a HUGE amount of real experience on a trading desk, in general any purchase of these is a losing proposition in the long run. All the trading desks that trade in these are always net short. The only time they are not net short is when they load in long before a hype campaign starts (email spam, web spam etc, bs press releases galore) and then they sell into the push up. Some people make money but in the end, the manipulators take it all as it will go to 0, become a shell, then name change, rinse and repeat.
I have written several times on penny stocks, all I can say is stay away, far away.