UNVC and penny stocks
Some quotes from UNVC's recent 10Q:
1. "General UNIVEC has incurred net losses for each period since its
inception. The Company expects operating losses to continue until
such time, IF EVER, as the Company can sell significant units of
its locking clip syringes, and it can manufacture syringes at
costs sufficiently lower than selling prices so that gross
profits cover overhead expenses"
2. "Sales for the three months ended March 31, 1997 (the "1997
interim period") increased by approximately $61,000 as compared
to the three months ended March 31, 1996 (the "1996 interim
period") as result of increased resales of disposable medical
devices, which did not utilize the Company's locking clip."
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=> They are losing money, and they are not sure whether their
product can be made cheaply enough to make money. They aren't
even selling their own product. The insider buying is good, but
this looks too risky for my blood.
On a similar vein, I'm the of the opinion that most people lose
a lot of my money on these penny stocks and these cheapo IPO's.
Some sleazy brokers sold some of these penny stocks (thankfully
not many) to my father while he was dying of cancer. It's taken
us a long time to get the stocks from the broker after my
father passed, and the stocks keep going down and down.
A lot of these companies don't make money, and for all we know
could be entirely fake (this happens all the time). Some
common sense --- If you could be making 10x or 100x your money on
some stock, why would you be telling strangers instead of buying
more yourself and telling family and friends?
I think we should start another thread for the "undervalued"
penny stocks. I'm sure there's lots of money to be made,
but it seems to me more like speculation than investing,
and not in the original spirit of the thread. At least
not what I'm interested in. Grommit, you started the thread,
what do you think?
It is just my opinion, and I don't mean to take things out on
UNVC --- it could be a great stock. I guess I'm thinking more of
OVIS, where the bid/ask spread is almost 20% the price of the
stock. Although it too could be a great stock, it seems like it
is being over-hyped.
MCsweet
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