If an investor sees good potential in a company, it would be logical that her/she would want to own as much of that company's stock as possible. How does one do that and yet not place all their eggs in the SAME basket? I think the strategy of trying to BUY in while that stock is on it's bottom. Then SELL on a NICE RUN UP of 30%, 50%, or 100% move. Taking those profits, and with patience, waiting for a drift down. THEN With sometimes as much as TWICE the BUYING POWER from profits an investor can own MORE shares of that company than before.
Use of this strategy several times in the same stock places that investor in a MUCH better position to profit in the long term.
.......Owning two, three or four times the number of shares in the .......favored company....... .......Having a HEDGE against the UNKNOWN possibility of the stock .......not performing as expected....... .......FREE capitol to invest in that company or another.......
Having invested in a great number of otc-bb stocks just such as LGOV. Every single one that I have either been in or followed which made 50% to 100% RUNS, without exception, pulled back as much as 20% to 50% of that GAIN. From this, FORMS the strategy mentioned of investors to consider TAKING the opportunity presented in 30% to 50% PROFITS. Then using those profits to BUY MORE stock and OWN MORE of that company's stock.
I have made this observation from My involvement in these otc-bb stocks & Small-Cap stocks. That WITHOUT FAIL, They will RUN, STALL, DRIFT DOWN, SET a NEW BASE and THEN Hopefully continue to move up. Most otc-bb stocks, even if they experience upward gains, NEVER go on to sustain a 200% to 500% move, many have a very hard time sustaining a 100% move.
I have used this strategy on ALL my investments when the opportunity was present and my ONLY regret is, I didn't use it MORE.
This is NOT ment to put down anyone for NOT trading or doing it this way. I use the strategy which profits me the MOST and would encourage anyone to do use a strategy which they find they profit the most from.
I own LGOV stock, have owned it many times since early 1995. I own MUCH MORE LGOV stock Than I would have owned if I had NOT used this strategy....................................................... So, I hope LGOV does go ON to become a $1, $5, $10 stock, as many here are hopeful of. I may have a some LGOV in my portfolio "if & when" that ever happens.
The longer Largo waits to SHOW their colors the more I would suspect a continued drift down before setting a NEW Base @ 30% to 40% above the old base of .10 cents.
If I can spark an interest in this strategy of "OWNING MORE STOCK, FOR MORE PROFITS", GREAT! I'm Paid in Full....................... This may only be worth what it cost you___________Nothing_________.
Regards, Malcolm Lindsey |