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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Eric Fader who wrote (31018)	2/27/2000 12:27:00 AM
From: Michelle Aldecoa	Read Replies (1) \| Respond to of 150070

Eric Yes maybe it is true that people like myself ask stupid questions. This is how I am learning. In the last few weeks I have held and sold BICO, MYIQ, TTRIF, FDNI, CYTR and BIME. Currently I hold SAFD and KTNV. I started with a modest amount of money for the purpose of learning. I have made a little on all except TTRIF my timing was bad. Another stupid question I might have is how you learned about BB stocks and trading? Maybe I was naive in thinking this would be a good way to learn. Maybe the Silicon Investor should screen potential members for their level of stupidity before signing them on. I would really appreciate your opinion on this. Michelle

To: Eric Fader who wrote (31018)	2/27/2000 9:39:00 AM
From: Tom Allinder	Read Replies (1) \| Respond to of 150070

I absolutely agree Eric... this is why I strongly encourage people to LOOK carefully at what they are buying. I get lots of questions about stocks that can be easily answered. The bottom line is that there are fewer companies and more money this time around on the OTCBB. It is HIGH risk trading for those who chase or buy blindly. I learned my lesson on that... I do not chase stocks... EVER. I wait until the first runup is done, then wait for a base to be established... once volume comes back in and the stock starts moving higher, I buy then... this is low risk. Those that follow my trades closely see that I do not bank on big winners (.10 to $20) to make money but rather try to make EVERY TRADE A WINNING TRADE. This works well FOR ME using the method I employ. I never have to rapidly enter orders and sweat out getting filled on these types of stocks. If I do decide to go after a bounce play or a fast mover, I use limit orders... if I don't get filled, I don't get filled. No big deal, I find something else. If people would think and check out what they buy, they would have plenty of time to enter and get an order filled. All too often though, people see something moving up and chase it with market orders. This method has worked for some in this market but it is only a matter of time until one gets scorched badly with this. Chasing stocks (especially with MOs) is like playing Russian Roulette. One of these days, the stock is not going to bounce back up so they can either get out even or make money on a bad MO fill. Thoughts on companies and valuations: I check out companies that I buy stock in. These stocks are ones that I hold for more than a day or two. Without mentioning company names, there are a number of company stocks that have gone from less than a quarter to near a dollar and in some cases, much more. In many cases, these "companies" are nothing more than a quickly thrown together web page and a couple or three guys sitting around a rented office space (or home office) with ideas on how to promote the stock. They churn out news releases of this that and the other happenings at the company and if you read carefully, none of these things have been done or even been implemented yet. In the meantime, they hire promoters to promote the stock through various different mediums. With all this in place, you have worthless companies ending up with market capitalizations in the hundreds of millions. On the other hand, you have companies that have things going on and do not promote themselves. Some of these companies wait until they have a done deal to announce it. These companies do not have huge valuations because of a lack of "exciting news" or promotion. Bottom Line: Stock Valuations are based on perception, investor/trader sentiment and not value. Not that there is anything wrong with this, but don't complain when the stock tanks and the NRs stop coming and you call the company and get a recording that the number is no longer in service. Tom