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

To: Paul Senior who wrote (61023)	7/14/2018 10:01:13 AM
From: Lazarus	1 Recommendation Recommended By Celtictrader Read Replies (1) \| Respond to of 78767

I think the answer to why I " can buy some of my dog penny stocks and hold them for years." is the carrying cost. To give an example: I buy 100k shares of xyz penny stock @ .001. My total investment is $100. Within a period of say 3 to 10 years there's some sort of catalyst that causes the stock to run and it goes to a penny (probably higher but my order to sell 100k at .01 GTC is executed). of course on can apply use the same example for a ..01 cent stock that goes to .10 cents or .10 stock that goes to a buck, and so forth. But, in my mind, with the penny stock model I'm using a hundred dollars to make a thousand. After success over many years I end up with liquidity to make other investments - for example the penny lands. And, since I'm sitting at my computer, why not try larger cap stocks, since they're easy to get in and out of and more people are playing them anyway. So I enter into new territory with larger cap stocks and realize that due to their liquidity they are quite volatile and buying or shorting them requires developing entire new skill sets. So I work at it.... ...But the main difference is: when I buy large cap stocks I'm usually investing THOUSANDS TO MAKE HUNDREDS BECAUSE MY CARRYING COST IS MUCH HIGHER, as opposed to penny stocks where I'm putting in hundreds to make thousands... . It's much easier for me to sit on $100.00 for years to make $1,000 than it is to sit on $1000 to make a $100. _________ As for KOOL it has a good stock structure. Trading below BV. What's not to like? Oh wait, I know, they need to make some $$$$$$$$.