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in reply to: ENG and CLNE #16481
That is the difficulty with microcaps at the moment. So many investors are jumping into any stock with a pulse. ENG, CLNE, etc. have been on fire lately but haven’t really cooled down much. Make sure to just stick to the Game Plan instead of trying to rationalize these crazy moves. Either way, happy that everyone is profiting off these stocks!
in reply to: HCHC Rights Offering #16311Did not initially chime in since Eugene had asked members. The real question at hand is whether it is worth investing more into the HCHC regardless of the offering amount or price. A change in share structure rarely warrants a change in position size unless you are uncomfortable with the stocks volatility.
HCHC is currently within buying range under $3 and the offering price of $2.27 is appealing compared to its recent closing prices. However, if you already have a diversified portfolio and a standard size in HCHC, there is no reason to change your risk exposure.
I have not been stopped out of my TOMZ position but only recently entered. I missed the big run up but the recent price action seems extremely unusual. CEO Halden Shane commented on the action a few weeks back stating, “there is no fundamental reason for the decline. It would appear that… it may be attributed to certain investors who misinterpreted comments on our prior earnings call on May 18th, 2020 as we do not give formal guidance, but we do share good news on a real time basis.”
More than likely, investors initially sold into the news and are now getting scared out. A vaccine or improved testing won’t change the fact that the industry standards for sanitation have changed. TOMZ will still be relevant and its products will be in demand so I will be holding and potentially adding more at lower prices down the road.
I updated the VHI share price in the Bowser Portfolio Tracker as well. Keep in mind that reverse splits result in a higher level of volatility, which can be a double-edged sword. Buys and sells of smaller lots will still result in large price fluctuations. Most reverse splits are even seen in a negative light because they precede secondary offerings.
in reply to: Google Spreadsheet Portfolio Tracker #16066Kirk,
I checked the tracker and the formula is already in there. Let me know if I missed something.
in reply to: New Year New Portfolio #16010This is a great question Darlene. The purpose of diversifying is to avoid putting too much size into one stock. Therefore, if you reach your ideal number of holdings, you should gradually increase the number of shares you are purchasing of your current holdings or any new stocks. By doubling your typical size for new holdings you may overexpose yourself to a specific stock. For example, if you typically buy $200 of each stock, then you could start buying $250-$300 position sizes as opposed to immediately doubling the size and overexposing yourself. All in all, you want to keep equal weightings in your holdings so try not to buy too many shares of just one or two stocks.
in reply to: The Corona Market Crash… #15918Good thinking on GLXZ. A ton of gaming stocks are bouncing back but haven’t seen that from GLXZ yet. I did a write up that includes RADA and LOAN for the blog. Check it out – LINK
Either way great thinking Chris. Agree with a lot of your points especially WFCF.
in reply to: NVFY – Sell? #15917Micah, I can see you’re frustrated with NVFY’s rating but it’s important to remember the point of the rating system – to help understand the financial health and potential of a company. We have an understanding that NVFY has great finances, but that doesn’t change the fact that there are many underlying issues with the company. The reverse split was without a doubt a big red flag. If you search NVFY on the forums you can see that we’ve discussed it thoroughly and highlighted more negatives than positives. The best part about the investment process is the ability to make your own decisions. If you stuck to the Game Plan, you would’ve locked in profits and not revisited the stock. Just because it’s rated highly doesn’t mean it’s in play for a reentry. It just means that it has strong fundamentals. Hope this helps.
A reverse split reduces the number of shares and increases the share price but DOES NOT add or remove value from the stock. I’m seeing roughly 5 million shares outstanding – meaning you’re correct. That was a typo as we didn’t account for the reverse split. Personally I don’t like reverse splits as they’re usually a cry for help as the company may be in a tough spot financially.
in reply to: The Corona Market Crash… #15898Some of the biggest losers this week were GLXZ, IVFH, and HCHC. Seeing as they may have some impact from the COVID-19 outbreak, I’d look for names with more immunity. RADA is definitely at the top of my list as well as LOAN/BABB for dividends and LSYN for future growth.
I’m surprised there aren’t more of these threads on the forum! We should be looking for discounts and following the Game Plan through these trying times. There is plenty of opportunity when investors become fearful.
in reply to: New Year New Portfolio #15849These are all amazing tips for Bowser Buckaroos! Thank you all for sharing your investment styles. To touch on Jim’s “problem” where he has too many positions to keep track of – this is going to be an issue for a lot of investors moving forward. The difficulty in having a lot of holdings comes from tracking them opposed to commission expenses since brokerages have virtually eliminated those fees. The weekly and monthly issues are a great resource for tracking headlines, but it’s still easy to lose track of them. As long as you don’t fall below 8-12 holdings and you’re able to track the companies actively, then you’ll have a good balance of risk management and portfolio tracking.
in reply to: Change of year strategy…2020 #15848Medical marijuana and CBD stocks have been hot and cold over the past few years. Most of them peaked in 2018 and haven’t seen much buying pressure since. To our knowledge, there are no marijuana stocks that have a Bowser Rating of 8 or higher and trade under $3 per share.
The only stocks that come close to fitting our criteria are Aurora Cannabis (ACB) and Cresco Labs (CRLBF). However, with the lackluster industry revenue estimates and low probability of Federal legalization (Trump and Biden leading polls), we’re steering clear of recommending any for now.
We removed it from the newsletter because management made a few mistakes, which is concerning for any long-term investors. the stock has since dropped substantially and the company missed earnings expectations again. I actually really like their business model but management needs to make some improvements before we can recommend it again. Here’s a link to the latest quarterly results: RESULTS
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