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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?


To: chirodoc who wrote (13022)6/13/1998 11:12:00 PM
From: Seth L.  Read Replies (3) | Respond to of 50264
 
Doc do not mean to intrude but arent you comparing apples to oranges?

The statement in question is
<<<< BB stocks tend to move more on expectations of future earnings potential and less on general macro-economic trends.

you stated this:
.any research to support that?
...everything i have looked at says that the russel 2000 (about as close as we can get to small caps) has been abysmal since the asia flu started


He is talking about judging in his opinion how an individual bb stocks price movement maybe explained.You respond with the russell 2000 index movement. Doc IMO one has nothing to do with another. By the way IMO he is 100% right. For example if the biotech field is getting hammered as an index, would that preclude a small company that is rumored to be releasing a new plastic heart valve and is expected upon release to sell 1M worth of product in the first quarter to still have a stagnant share price? I do not think so.

seth



To: chirodoc who wrote (13022)6/14/1998 5:45:00 PM
From: Sloth  Read Replies (1) | Respond to of 50264
 
Hey Doc, I seems like these smaller stocks ARE insulated some from the overall market flux. While DGIV has been making its run in the past months, the market has tanked a couple of days and DGIV made strong gains. When I was new to DGIV, this excited me because I saw it as a way of keeping some of my money in an investment that would not tank for obscure reasons. To be fair, DGIV also had some bad days when the rest of the market was going up strong. But when Indonesia flared up last month, DGIV didn't get hurt as bad as some would have expected. The investors were willing to look beyond the crisis and at the long term prospects.

I would agree with Curtis that the small picture is what moves these stocks. They will gain or lose 50% just on news. I keep looking at the OTC BB like they are a minor league baseball team. The companies are struggling to make it to the big leagues. When there was a baseball strike the minors actually had record sales because they did not carry the big league baggage. Lets also look at the mentality of the people that went to the minor league games. They wanted a fresh approach to baseball and the tickets were cheaper. They could afford to take the whole family and maybe even buy their kids a hotdog. That's value. I would also bet that it is people like these that make up the majority of our investor base.

I could be wrong, but until we hit the big leagues we have a huge group of little investors that make up the shareholder base. They may only own one or two stocks and don't need to care if the computer box makers are having a bad quarter, or Japan is in recession. It doesn't impact them personally so they don't sell because of it. Now if you owned Compaq or IBM you would be concerned. There are so many institutional investors that NEED to watch the big picture and will sell and the stock will go down.

I do have an Economics degree but to be realistic, I can hardly remember what macro-economics means: A pasta dish right? My observation is based just on one's humble opinion.

Sloth