How to Avoid Scams

u/gregw134 · Reddit — r/pennystocks · January 03, 2026 at 21:52 · ⬆ 324 pts · 💬 95 comments  | View on Reddit ↗
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Original Reddit post

The author explains how to spot stock scams and applies the routine to GPUS, advising investors to run away due to dilution, fraud red flags, and cash burn.

GPUS — AVOID The author identifies Hyperscale Data Inc (GPUS) as a fraud to avoid. His mechanism is severe share dilution: shares outstanding rose from 1.1 million to 135 million in one year, reducing an early owner from 1% to 0.01%. He cites additional red flags of auditor fraud indicators, a manager with a prior SEC enforcement action, and a quarterly cash burn of $17M against $52M cash, implying only about nine months of runway. He advises running away if annual dilution exceeds 50%.

But if you see share count increase by 50% or more in a year it's usually time to run away.

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u/gregw134 Reddit r/pennystocks
Avoid GPUS due to massive dilution, fraud red flags, cash burn.
The author identifies Hyperscale Data Inc (GPUS) as a fraud to avoid. His mechanism is severe share dilution: shares outstanding rose from 1.1 million to 135 million in one year, reducing an early owner from 1% to 0.01%. He cites additional red flags of auditor fraud indicators, a manager with a prior SEC enforcement action, and a quarterly cash burn of $17M against $52M cash, implying only about nine months of runway. He advises running away if annual dilution exceeds 50%.
More from Reddit — r/pennystocks

This Reddit post, published January 03, 2026, features u/gregw134 discussing GPUS. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/gregw134  · Tickers: GPUS