RE:RE:RE:RE:RE:RE:So what's the game plan here?amp007C,
I'm sorry this is distressing you. I've been in this rodeo for a long time, I guess, so price movements like this don't phase me. A lot of that has to do with the fact that 85% of my portfolio are in index ETFs, blue chip dividend stocks, bonds/preferred shares, and precious metal funds. The remaining 15% of my portfoilio are in smallcaps -- but diversified across about 15 companies. So BNXA is only a small portion of my overall portfolio (less than half a percent at this point).
For newer investors, I generally tell them that the market can do anything. There are no guarentees, especially with a stock like BNXA. It's been on the market less than a month, has no long term track record with revenues, and is in a market with plenty of question marks as to short to mid term price movements.
My advice would be to make sure at least 80% of your portfolio is in large cap stocks and bonds. With the remaining 10-20% of your portfoilio, feel free to speculate with smallcaps that interest you, but always be prepared to lose it all. I remember a BIG bet I made on a "sure thing" a few years ago that basically went bankrupt. If you haven't already done so, I'd also encourage you to learn how to read financial statements and value a company. It matters whether you are buying a company that is overvalued, undervalued, or fairly valued. Risk management is key.
As mentioned yesterday, I value BNXA somwhere between $20 million and $120 million based on factors that are too difficult to predict at the moment. This puts the share price somewhere between $0.50 and $3.00. Not very comforting, I know, but thems the breaks with this kind of stock. Until we see a track record established over several quarters, the value and/or direction will be impossible to predict. Fair value could also go higher than $3.00 if revenue growth continues.
There's also the risk of a big market drawdown over the coming weeks and/or months, since this kind of speculative furor was last seen at the height of the dot-com boom in 1999. How much longer will this keep going? Who knows? But I'd place my bets that it won't continue for more than another few months, perhaps less. It's possible that BNXA will go on a run before then, but I'd say it's equally possible that it could drop to $0.50 before that happens.
Flip a coin. It could go either way.
My initial investment at $2.20 was fairly small because I'm seeing the risks in the market. But I like the fundaments and story behind BNXA, so I did want a bit of exposure. If it drops into the $1.20 range I'd buy another partial position, and again in the $0.50 range. Not saying that will happen, only that it's possible.
Good luck! Hope that helps.
amp007C wrote: BCDude, what are you predicting the stock price to be over the next six months. I haven't sold yet, but you can't pretend that this drop isn't distressing, regardless of whatever your predictions might be.
We know of no impending news in the short-term, and the market seems poised to push this lower. When was the last meaningful green day?