Mr. Berger: Yes. The failure rate of low-value public companies is very high. Whether or not Mr. Gardner's figure of 75% figure is accurate, I have no idea - but it really doesn't matter - it's HIGH. Most of the failed businesses are new businesses, and the failure rate of any new business, listed or private, is extremely high. I would venture to guess that the failure rate is even higher for non-listed new businesses.
Those of us who choose to invest in under $5 companies do so for the shear gamble. The odds are much higher, but so is the potential.
Smart players in BBs never bet the ranch money,
only the spending money.
Of course smart investing won't assure you success, even on The NYSE, but it will cut down on the odds against you.
When people don't question stock tips from unsolicited (or solicited) internet (or other) sources, they're asking for trouble. These tips are sometimes accurate but the investor should always do their own DD and then follow a stock for awhile before investing in it.
Sometimes waiting means missing out on a big profit -
that's just fine, because there's always another investment opportunity waiting for you down the line.
Finally, if you're going to spend thousands of dollars in a stock, consider visiting the company. On-site visits won't tell you everything but at least you'll know whether or not you've just invested in a real company, as opposed to a vacant lot (as happened to one of the people mentioned in the story you came across).
I have been to FNTN and it is NOT a vacant lot.
On the contrary - it is a company with offices, phones, desks, real equipment and sharp minds.
The next question for the cyber-investor to ask is - who am I telling you all this?
You don't know whether or not I have my own hidden agenda.
Maybe I've never been to Ardsley and I'm making the whole thing up!
In an effort to allay fears, I have gone out of my way to identify myself in my SI profile. While posting a full profile does not guarantee the accuracy of that individual's posts, personally, I tend to have greater trust in the intentions of those who supply more than basic information.
So again, there are ways to change the odds, and there are companies that go from 50 cents to 30 dollars in a matter of days.
Nature's checks and balances just don't allow us to pick them right ALL the time.
Having had some experience with winners and losers, I'm still happy to keep my bet on FNTN as a future star.
Wally |
