Since people are discussing investment strategies amid the wait to see what BUK does, here’s my 2 cents on this whole matter, for some of you may think I am stating the obvious, my apology for that.
The principle bottom line when investing in stocks is that you are taking risk, no ifs no buts, fancy words like “due diligence”, “Research” are just as good as the sources and the perception of the reader – I have seen GOD like companies going bust like 1 2 3 and unsuspecting companies sky rocket. The sense of “risk mitigation” is partly a psychological satisfaction which is subjective to user’s understanding of risk. Sure I can buy APPLE’s stock today (as one of the safest investments) but cannot accept an overnight 5 bagger or 10 bagger with it. In fact, the chance for companies like Apple or Google can go significantly down in few weeks with one bad move by them or one smart move by its competitors – hence risk mitigation becomes very relative.
Diversification is good, but we know diversification reduces the chances of profit – someone may think only 2% of portfolio should be BUK, some may thing 20% and some even 60% - there is no such thing as Elephant balls or Rat balls in choosing any of the strategies, everyone’s investment strategies are different, financial goals are different and most importantly risk aggressiveness is different – so no point of suggesting a certain percentage allocating to a stock.
Of course I am not saying to spend the entire life savings to companies that can still go anywhere, I personally won’t invest more than 20% to 35% on BUK, but will not mind investing 75% if they release a press news saying their debts have been restructured and they are all systems go to get gas. Interpretation of news can vary from person to person and no boiler plate strategy applies to anyone.
Diversification is good if you have lot of money to invest, but if you have only say $5000 to invest, you cannot go with diversification, you have to take risk and need to go with “anything can happen” type companies – max 2 of them, coz if you diversify your rate of profit will be too insignificant to compound your initial capital.
Once you “gamble” and “win” on your stocks, only then you can start thinking like a hedge manager and do your percentage based diversification.
Another thing is, I do not believe Stockhouse Bullboard can cause any significant impact to move any given stock’s price. BUK has 160 Million outstanding shares and the posts of us here (either shortes or longs) bare no big significance on its price – market has its own mind and it usually reacts to REAL NEWS – this is why we are not seeing Bridge stock is going up this week.
I think Bridge definitely need to release a positive news sooner than later, and only then we can see the stock price rise up to teens and maybe even to 20s, news as Conditional Permit or personal emails to CEO, or what majority “thinks” have little to no influence.
Conditional permit did help Bridge but does not add real value yet, the principle hurdle for bridge is to get the refinance, and only then it may have a good break out from the single digit cents.
Elephant balls or rat balls, don’t think anyone is denying the potential loss by holding this stock, but if you look at the upside, the reward is enormous and practically quite possible – admit or not, most of you guys are here for that reason alone ! Is BUK the safest stock? NO, but it surely will keep us excited in coming days and maybe some of us will make a fortune !! only time will tell.
As for me, I am sleeping well and quiet comfortable with my half a million BUK stocks averaging at 6 cents.
GOOD LUCK TO ALL.