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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?


To: Patentlawmeister who wrote (4009)9/17/2003 6:34:03 PM
From: Crossy  Read Replies (3) | Respond to of 37387
 
Cuda,
so much about the beauty of "concept companies". I shy away from such story stocks. To me a portfolio candidate company should be able to at least SURVIVE on it's own without constantly issuing new shares. My point is - nobody forces you or me to buy ZIXI. Others are willing to pay $7 for these "empty promises" (IMHO) ? Fine. Not for me.. There have always been such pockets of the market. Biotech for example is mostly overally "R&D type" without revenues. What are you buying then ? A portion of FUTURE EXPECTED CASHFLOW. This is of course an uncertain cash flow stream - it'S said to be "stochastic" in nature.. but it still has a price.. and the current "objective value" (market derived) is what others are willing to pay for it..

now if the story of the company materializes the cashflow will materialize. however this raises the problem of "risk". Concept companies are even more risky. The risk of default is way up here. As the risk of uncertainty of the gameplan. That's why I like to invest elsewhere - where I do not depend on the rabbit out of the hat - act by their bosses (does the casfhlow show up or not ?)

rgrds
CROSSY



To: Patentlawmeister who wrote (4009)9/18/2003 1:45:28 AM
From: michael john stout  Respond to of 37387
 
cuda- that's riduculous. ZIXI should trade at 0.00000001 and that's being kind. Similar thing with WGMGY today- a former bubble high flier, the company has said many times it will almost certainly be forced into BK by numerous legal problems, up 100 percent today on no news. Also PACW up 500 percent in two weeks on no news. This will end badly when it does end (2005? Late 2004?) and I believe we will not see Nasdaq break above 5000 until 2030 at the earliest.



To: Patentlawmeister who wrote (4009)9/18/2003 10:21:28 AM
From: Vegas  Read Replies (1) | Respond to of 37387
 
Example of echo-bubble: look at this company

Speculation in penny stocks existed long before the tech bubble and will exist long afterwards.

The fact that some of these stocks were once $100 or $200 dollar stocks only fuels the flames that much more.