The movement of these stocks usually has nothing to do with anything other than press releases and wild promotions.

The people who publish the newsletters are required by law to disclose the fact that they were compensated.

Of course, all of this happens on a bigger scale with regular and mainstream stocks and companies. The "Big Boys" have dozens of people working in PR and investor relations. Lying and fudging and cheating and manipulating goes on everywhere, not just penny stocks. It's easier to spot with penny stocks because the promotors get $20,000 and / or stock, whereas the big boys have top-notch lawyers and million dollar budgets to hoodwink the public.