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Technology Stocks : Information Architects (IARC): E-Commerce & EIP

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To: Bert Zed who wrote (5531)4/4/1998 5:27:00 PM
From: Jeffrey S. Mitchell  Read Replies (1) of 10786
 
Del, you make it sound so easy. Why bother with slow movers like the blue-chips when you can double your money in a flash with the pennies?

I'm glad you found a winner in the pennies. Statistics show that the vast majority of pennies are losers.

I think the obvious answer is to diversify. Put the money you "can't afford to lose" in what you consider to be solid, established companies, put some on the "educated guess" companies like ALYD, and then put "pure gambling money" on the pennies.

While ALYD might not double as fast as a penny stock, it certainly won't decrease in value by that much, as pennies are wont to do. If ALYD goes down by 20% I know it will recover. With a penny, that money may be gone forever. Yes, you can never be sure of anything, but I feel the risk/reward of ALYD fits my investing style. So far, so good.

- Jeff
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