Dear Blokker –
There is are general rules that most successful investors use to increase their net worth. The master rule is diversification. The main reason behind my financial success can be attributed to that single rule. My portfolio includes Microsoft, Intel, Lucent and other somewhat stable stocks. Plus I own Mindspring, Yahoo, Amazon.com and other stocks that I sell portions of when the price peaks and then repurchase when the stock hits a valley. But some of my most profitable ventures have been in penny stocks.
Do the math. If I purchase 25,000 shares of a $2.00 stock for $50,000, and if six months the stock drops to $1.00, I've lost $25,000. However, if the stock increases to $10 in the next 2 years, which I strongly believe that KCAP will, I would then own stock worth $250,000. By selectively picking the penny stocks with the most potential, the risk is well worth the payoff.
By the way, thanks everyone for the great responses – especially the supportive private massages that I received. Since my first posting about KCAP, I've received additional positive information abouth the company, but will not be relaying it until I can confirm the info. Unlike some, I make it a policy not to post misleading information.
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