If you can't make money, I don't care if you have the cure for old age, it's not a good investment.
With this type of reasoning, no one would ever invest in a start up company that requires capital to build it's business. No one would ever invest in research and development because they won't be making any money during the start phase.
If you want to day trade the momentum of this sector, good for you. There are others out there who will "invest" in a company like CORV because they believe that their research and development will create (or has created) a product that will make money in the future. The all optical network requires new technology, technology that CORV claims to have right now.
The first companies to market will have very few customers, initially. Look at CORV's customer list, it's pretty small at the moment.
We are seeing a transition from traditional optical companies, that have to continuously convert from optical to electrical and back to optical during their 'backbone' signal transmission, to the 'new systems' that no longer require a conversion to-and-from electrical signals during the backbone transmission.
You have stated your belief that CORV won't be a profitable company in the future, therefore you are shorting until the 'pennies'. It will be interesting to see who's more accurate, you or those who have invested in the future!
Do you think CORV is the only short in the sector? WCG, LVLT, SCMR and the others in this sector, are they also 'penny stocks'? |
