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I totally agree with the last two posts, I am sitting tight with this one, the day will come when the price will appreciate and all those that sold because they haven't yet got their quick fix will be left scratching their heads. Actually I have seen this many times before, there is a type of investor who takes big position because of the lure for a short-term, quick hit (usually around 200 - 300,000 shares - let's face it, this is less than $40,000 and they know that there is enough promotion in the stock to raise the price), however, at the first sign of resistence, they sell out, usually only $0.05 to $0.10 abover where they bought it. They listen to all the hype from the negative people, they actually get tricked into believing what they hear (for example, insiders are selling, options dilute the stock so sell because the play is worthless, everything is lie, etc.) and then when the stock runs, they sit there kicking their you know what. Here is an example, I have seen this over and over again, even with my best friends. One time a friend of mine accumulated a good position in a stock (in the low $0.20 range), the play bounced for seven months (yes, seven months), but he got convinced by the rumours that the play was going down, so he sold. Rumours like, the company president is going to jail, shares issued under the table, insider has sold all shares into promotion - the rumours where thick and heavy. Within three weeks the play topped out just shy of $1.00 and he would have had ample time to sell all his position above $0.60 and higher. Here is the lesson, he left 400,000 shares x average $0.45 = $180,000 profit on the table. That stayed with him for years. I relate this story to everyone because that is part of believing your due diligence, your heart and analysis should tell you what to do, rumours are very dangerous and should be avoided at all times. They are a good balance and check, but there is nothing better than a good undervalued fundamental stock with growth potential. I believe Medical Resorts is one of them but there needs to be some time before the correct cycle is in place. |
