Loren, You are 100% correct, touching on a VERY good point, "SELECTIVE CHOICES", which gives an investor a HUGE advantage. I have never addressed this point you bring out, and prominence should be given to being SELECTIVE.
As (FNTN) was, so is (SSGI), a GREAT example of this. One of the criteria's I look for is a VERY LOW Float, like we have here in (SSGI). (FNTN) had a low float of about 4 million shares in July of 1997. That has since increased to a known 11 million. Now 11 million is still a low float, especially in a stock priced at $1.60.
If the Float is not low then there better be investor expectation of HUGE potential. A good example of this is one I have traded since early 1995, Largo Vista Group (LGOV) largovista.com
LGOV seems to have a current solid base at the .20 cent level. LGOV's float is about 60 million, there appears to be a lot of that being HELD because it does not seem to take much buying or selling to move the stock. SO, you essentially have a LOW Float, the difference being, WHEN will those holding decide to TAKE PROFITS? Knowing this, extry Caution should be applied, even though LGOV has been a very good trading stock for me personally.
Early this year, I began accumulating LGOV at .09 cents up to .23 cents. In April LGOV shot up to .80 cents, providing a HUGE opportunity, which I took at .66 cents. Still Trading LGOV and I think I see another RUN UP developing.
This point you make about being selective, is complemented by always attempting to ONLY buy at or near a stocks 52 week LOW or believe that stock has set a NEW BASE..If I am taking a FIRST TIME Position, I just about ALWAYS make the 52 week LOW a priority. Just as we have here in SSGI.
I have already traded SSGI twice, and this 3/8 seems to be THE spring board.
One other part of the strategy I use, "IF" I believe in a company, as I do here with SSGI, is owning a CORE Position. A CORE position assures me that if I sell a portion of my shares for a 30 to 50% profit, I still have shares in the event that the stock just keeps on climbing..
Another part of this is, if one believes they have found a stock with a lot of UP SIDE potential, then one would want to OWN as many shares as they can. Most of us have LIMITED CAPITAL, so the ONLY way I have found to OWN more shares is to TRADE the stock and BUY more shares with profits.
Example:
If I purchased 15,000 shares of SSGI at .375, then sell 5,000 of those at .53125 & 10,000 @ .5625 that's an approximate $2,500 profit. With $2,500 I can now own about 6,000 MORE shares of SSGI. Owning 21,000 shares of SSGI at a cost of only $5,600 or an average of .27 cents. THAT gives me a BAIL OUT break-even HEDGE against loss of original capital..
Loss of original capital is NOT the objective and is more than realized because it lessens ones ability to capitalize on OPPORTUNITIES such as SSGI ;^)
Hey, I might as well post this today, ain't nothing else happening and someone might be lurking who will see the potential to benefit from this :^)
Regards,
Malcolm |
