Risk Involved Her...Michael, you said, "If guy 1 enters a stock on the long side at $0.10 and rides it up to $5, and guy 2 enters the same stock on the long side at $5, is the stock somehow more "risky" for guy 2 than for guy 1? Or are they both in fact taking on the same amount of risk by remaining in the stock at this level?"
Risk is there for both, but if you don't see the guy buying at a higher price having more risk, then I'm not sure we can agree here.
The guys who bought at $0.20 have way less risk on the downward side if this doesn't pan out than the guy who bought at say $4.50 of course assuming that the guy who bought at $0.20 hasn't sold some to hold free shares,
You're assuming that Zenyatta will move higher and that it will be successful in proving an economic resource and that the purity is 99.99% for the entire deposit as well.
The guy who bought in at $0.20 received so far a 2400% increase on his money. Do you think Zenyatta will move another 2400% or even 1000% from here?
Anything can happen, but of course the higher the price, when they are at such a preliminary stage, makes investing for the long term, much riskier here.
You should also remember that they made this discovery over a year ago, and it didn't start to move until the purity on a bench scale returned in November I believe. Anyway, this is the way I see things.