RE:RE:re: dd Mercurysmith...In the past two years I have tried my penny stock luck with gold, silver, tungsten, oil, communications, medical supplies and solar panels. Bottom line is that while the USA market has monthly set new records during this window of time, the Canadian markets have all been in the toilet.
I figured I had three options:
1. Play it safe by not investing in any more Canadian stocks until the market showed signs of life.
2. Take a page from Warren Buffett's playbook and buy in the bear market when everyone is selling.
3. Try finding some needle in the haystack in which to invest, based on my belief in the product.
I looked through hundreds of Canadian penny stock and almost none of them had gone up in value over the past two years. I found Qsolar, which had an amazing chart during this window of time, bucking the trend and going from .15 to $1.24. I believe solar power is the future (although I accept it could be the distant future unless the technology improves). Q seemes to be on the cutting edge of the solar panel technology, and it seems well funded (including lots of insider funding). I convinced myself that Q is that needle in the haystack, so I loaded up with $1 shares, only to discover that the s/p would soon shed 25% (but at least hold steady with a base in the .70's). I then explained the loss by blaming the recent EU chrises.
Now I have come to the conclusion that I believe so strongly in solar power being the future and that Q is on the cutting edge of that technology, that I really do just need to quit second guessing myself and sit tight and ride this out longer. If my belief is correct, sooner or later we will get some news regarding sales contracts and the s/p will shoot up. If I would have listened to Buffett, I likely could have saved 25% on the s/p, but in the end, if this turns out be converted from a penny stock to a multi-dollar stock, then that 25% at the penny stock level is pretty insignificant. I try doing my dd with Q, but in the end, it boils down to having trust and faith that it is no fluke Q had such a good ride upward (a 7 bagger between the 52 week low and high), and that the product is just that good such that Chinese and USA contracts will soon be found, thus avoiding the EU bubble.
I guess I took a lot of words to say that dd for a penny stock company is difficult given the limited news, and if one is going to invest in it when the market is down, then one needs to really believe in both the solar panel industry demand and the cutting edge technology of Q to jump the Q given their technology and go to the head of the line with getting sales. Call me a naive fool, but that is my belief.