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Gold/Mining/Energy : American International Petroleum Corp

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To: DEER HUNTER who wrote (9640)4/2/1999 10:19:00 AM
From: Ray  Read Replies (3) of 11888
 
DH, I think your amazing find, that the stock has fallen from 7 1/8 to 9/16, merits another "Geeee Whiiiizzz!" :-)

May I ask just what reliable predictive power this observation holds? Taken by itself, isn't the predictive power about zero? The present low price could just as easily indicate a good buying opportunity as a reason to sell. The REASONS for the low price are all that matters, and nothing in the way of reasons are provided by merely observing that a stock has gone up or down by some large amount.

One of the best ways to make money in stocks is to find a company whose shares have fallen to a low level for irrational reasons. There are some pretty strong indications that AIPN's share prices are irrationally low (quite a few oil exploration companies are now in this category). And, if one already owns such a stock, the decision to sell or hold is logically precisely the same (except for tax considerations) as for someone deciding to buy or not buy. This last observation also warrants a "Geee Whiiizzz!" because it is so obvious - but it is a fact that many often overlook.

IMO, AIPN shares are irrationally low, and I intend to hold. Others must make their own decisions. I fully realize that there is a substantial risk that AIPN will fail; but I think this is less than a 50/50 probability, while the upside potential is perhaps ten or more. For me, and only for my assessment, this is a good bet.

One thing you can truly count on is that I will not gloat or claim to be a seer if I win; nor will I whine, rant, or blame others if I lose.
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