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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (57837)	8/20/2016 1:18:16 AM
From: Lazarus	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78704

I think I'm familiar with some of the high priced OTC stocks you're speaking of. As for this: "FWIW, we are late in the bull market, so I don't think now is the time to pig on these stocks and make them a large allocation in the portfolio." What we've seen so far has probably been an institutional bull market... there are trillions sitting on the sidelines and lots of people who left the market who want to get back in (but are scared) and then there's a whole generation out there (speaking of my six kids and their friends) that are just beginning to enter the market. You aint seen nothin' yet... we're just beginning to roll.

To: Spekulatius who wrote (57837)	8/20/2016 8:21:06 PM
From: Graham Osborn	Respond to of 78704

Key - late in the bull market. When I buy these illiquid OTC stocks, I sometimes feel like I am providing liquidity for the Lazarus's and Spekulatius's of the world that bought them earlier. It's not that the stocks aren't cheap, but rather that I recognize they will probably remain cheaper than "fair value" owing to the illiquidity premium and can hammered hard during the bear phase. I get nervous buying stocks like IEHC that have had a big run-up and would rather buy on sustained 52-week support.