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

To: PRATT9999 who wrote (4455)	1/11/1998 9:40:00 AM
From: David Smith	Respond to of 11708

"The Penny Dow" I like it. Greg, make this the title of your list. David

To: PRATT9999 who wrote (4455)	1/11/1998 10:25:00 AM
From: TraderGreg	Read Replies (2) \| Respond to of 11708

Obviously, one week of data is not sufficient to mold my analysis approach. Moreover, some of the stocks just happened to run up a bit prior to New Years. In any event, my Penny Dow approach still seems reasonable. Goes something like this: Allocate 80 units and invest 1 unit each in 40 pennies. When one of the 40 tanks at least 50 %, re-assess that stock(checking for dilution with no asset acquisition). If all is still OK, add 1 new unit to that stock. When 1 of the group takes off, sell some % of it(still undecided when and how much). Sell at least half after a 10 bagger. Re-evaluate throughout the year. Adding to/selling from the positions. If the 40 extra units from the beginning have not been impacted, consider looking at new issues also. Obviously the 80 unit approach could be scaled down if desired. It will be interesting to see how this portfolio goes through the year. TG