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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: KZAP who wrote (3569)	12/14/1997 4:19:00 PM
From: TraderGreg	Read Replies (2) \| Respond to of 11708

< if Christopher Smith is investing millions for his clients why would he be so generous as to come 'down here' and attempt to help us> Point well taken. I hate to sound cynical, but I always raise an eye when a stranger wants to save me from myself. BTW, on the subject of pennies. Let's say you do some DD(and I still stand by my theory that DD on a BB is easier. You reject at the first whiff of odor like runaround, share dilution without asset change, etc., etc.With the big caps, we know the suits still manage to screw up--which is why earnings shortfalls are so common). Anyway, I digress. You do the DD, pick the 20 BBs that are beat up bad, real bad, but no major dilution, and simply the effects of what appear to be heavy shorting. You get these 20. They won't ALL go to 0, no matter what the suits say. Say just five of them hold on at breakeven and say ten of them go down an average of 75 %. Now, of the remaining five, let's say four of them lose 50 %. What do we have? Start with 20 @ $1,000 each. We now have: 10 @ $250 each PLUS 5 @ $1,000 each PLUS 4 @ $500 each or a total of $9,500. If the twentieth one does a ten bagger, you're almost even. And that's with just a 5 % success rate after DD. If 2 of them can do it, your up nearly 50 %. Moreover, the ones down big, you could still hold and have 1 of them rebound--someday. I mean it happens. Look at CSMA, SETO, even EUTO did it. The key here is time, it's on your side. Moreover, with 20 BBs, no one issue is tying up the family jewels(pun intended). With a big cap, if you guess wrong, it's over. I mean I guess you could buy say 7 sh of MSFT, 14 sh of INTC, but really now, would you? The BB is risky but with the new guidelines (pinks in one pile, reporting cos still on the electronic BB) , a chunk of your DD is done. And when you hit one, you really hit one. A $.20 stock can go to $2 easier than a $20 stock can go to $200--and no one in an Armani will ever prove differently. TG