Right ... see my strategy is simple ... It is paying off very very well so I intend to use it ... IDNW and CBQI fall within this I am about to convey. I wrote this to someone who does not understand why I am in the OTC ...
I guess the best way to start is that I like so many other investors are always on the lookout for the next Microsoft. Basically, a penny stock that becomes a market leader within their industry. Most of us should by now realize that those success stories are few and far between. You have the MMs which are a major force, day traders who buy in and sell out with Market orders, delays in successful business dealings, lack of confidence in the OTC over all, brokers not able to discuss OTCs with potential investors and so much more. An OTC has the cards stack against them from every possible angle.
However, we all know that there are just a handful of micro-cap stocks that are tiny little gems. There are fund managers out there that seem to have a knack for finding potentially explosive stocks and riding them to major gains. If they can do it then I should be able to since I do what they do. I have read many an article on these types of funds and the underlying basis for their selections. If you do not learn from the experts then you can?t very well repeat what they do. I have stayed up late at night studying and reading what Fund Managers look for in a Micro-cap. I invest more than just money ...
According to my readings, certain Fund Managers like Micro caps stocks, which range from $10 million to $500 million in market capitalization. They consider this capitalization the floor. CBQI met this particular criterion, I felt, because the low ask was $1.50 so it had a market capitalization of $39 million. To me this meant CBQI could trade 19 times its low ask and still be considered on the ground floor at $28.50 ask price per share to certain Fund Managers.
They know as well as we do that a stock is not going to carry a large market capitalization unless it is held strong by investors. The only way a stock will be held strong is if it defines itself to the real world. Hype, Newsletters, Stock running gurus with their sheep and dumb money followers cannot even think of holding a stock price to qualify for anything. To date, I know of no stock guru nor news letter nor paid promoters nor anything like that being done to CBQI. I know some think I am but if I was then I would make a fortune on every stock I ever picked. That flat out does not happen. Typically it is a good while after I get in a stock that some Guru with a sheep following or news letter runs it.
Anyway, I have learnt that fund managers that pick the right Micro-cap have scored huge gains with relatively small positions in this volatile market sector. Well, I want to be in one that I hold a good position in before any fund managers figure it out. Real world professionals and fund managers know if they get it wrong they are left holding enough worthless paper to wallpaper plenty of bathrooms and will probably be hanging wallpaper for a living. Their reputations depend on their picks, which has a direct affect on the fund they control.
Now once CBQI can get on NASDAQ Small caps then maybe those that play in this high-tech momentum market will look at CBQI. For some of them that do and along with some savvy investors, it has paid off extremely well. Heck, Fremont U.S. Micro-Cap, or Van Kampen Emerging Growth, or TCW Galileo Small Cap Growth I or MSDW Small Cap Growth B, etc could even notice CBQI once on NASDAQ Samllcaps. We have already had Prudential send out an alert on CBQI, which is one step below a buy recommendation.
Now most of these fund managers look for factors like rising earnings, expectations and valuations. We all know that not all stocks have the factors of that equation happening for them plus getting noticed by the market. So what I believe fund managers look for are stocks that management is getting all the factors of that one equation working together. John Harris and Bart Fisher clearly and distinctly are doing exactly what I believe fund managers are looking for in a future Microcap.
These fund managers or real world financial professionals spend an awful lot of time talking to management. They want to get a sense that management can continue to execute their business plan and make things happen. Management has to be the type that is charismatic and dynamic. Professionals that can keep going the extra mile to keep the growth steadily going up as long as possible. They want to clearly see a stock that is not going to be a micro-cap stock forever/.
Growth is what I believe they focus on primarily. That would explain why the Internet stocks are soaring so high. CBQI has a lot of Internet areas it is involved with from an auction site, Electronic Fund transfers/credit card processing online, Healthcare, e-solutions for B2B, Software development and distribution, direct connection into the WTO with China, and so much more. Also remember that CBQI by their news releases is proving a lot of the innovation in technology today is being pioneered by the micro-caps today. After announcing the MyWay.com CMGI announced wanting to enter into e-solutions for B2B.
Bottomline, I believe, I have a very solid underlying basis for being long and not selling any of my shares at the 12-bag mark, which is where I am at right now. Am I being pretentious? I doubt it because I can explain exactly why I own this stock and why I feel it will be a major winner this year and years to come. Am I taking on and fighting the MMs of the OTC arena? No, they are taking on the financial world not some moron out of Stockbridge, Georgia. Am I being to Dumb to know when I am being Stupid? Well hindsight is 20/20 but good solid DD and foresight could make your investment grow times 20 on the OTC and then times 20 on Nasdaq in the long term. Guess time will tell.
Hey, I have been wrong before.
I practice what I preach though ? If you do not know why you own a security then why do you? I do.
I know I am no Guru and do not want to be nor desire to have a bunch of idiots tossing around Dumb Money. I just want to make sound and solid investment decisions. Remember this is my personal reasoning and I could be totally wrong. Each investor should make there own reasons for why they own this security.
:-)
Gary |
