Brad, re. "Most of the stuff here on SI qualifies for the high risk portion of anyone's portfolio!"
There is a lot of discussion on speculative issues, but I think there is also a lot of talk about good small cap stocks, with solid earnings and growth. Personally I don't find much risk in investing in those. The odd thing is that a lot of people directly equate the company size or maturity with the risk involved. I don't think that is always correct. This company I consider risky, because they have very little in earnings, and are going after a technology that a lot of others are going after. The chance that they miss the boat is very real, and if they do, the break up value of the company is little.
It is tough to come up with a good target price, but I can tell you that I am not waiting to see if they will find the pot of gold at the end of the rainbow. With all that we know about them, I think we may well see some excitement over the next few months. I intend to play that, and take advantage of it. The target I set for myself is 0.32, to be reached within the next 2 months. I think this should be possible, because insiders where comfortable with a 0.32 PP. That would suggest that they have reason to believe they will end up substantially higher then that in the near future. Setting the PP placement at a premium to the stockprice, may also have been done because there was a note payable to insiders, and the PP was a way to settle this. I tried to find out what the scoop was on that, but got the brush off from an incompetent IR guy. Even if that was the case, it was a gesture of confidence to set that price at that level, so I am willing to see if the market will push it there. 2 months to do so seems reasonable.
All the best, Robert |
