ABU may be a poor investment but it is a "spec" stock, you can't compare it to investing in the banks which are "blue chip".
It is recommended that all investors in the stock market have a "balanced" portfolio of stocks and a range of stocks to reduce the risks of making a loss.
As a "spec" stock ABU has the potential for its sp to rise 300%+, but there is also a significant risk that it won't.
For the banks to rise 300%+, you'll be waiting a long time, but you will receive a dividend and you can rest assured that you probably won't lose money in these stocks.
Other "spec" stocks have outperformed ABU over the last 2 years, but there are others which have performed much worse. That is the nature of investing in a spec stock.
Advisors will tell you that ABU should never be the main holding in a portfolio in terms of dollars invested. But the rewards may be huge if ABU's sp does take off!
In my portfolio I receive dividends from my blue chip stocks, and I hold 2 other spec stocks for the short term.
Spreading the risk and having some "rock solid" blue chip stocks keeps my portfolio in positive territory.
But, I am very confident that ABU will do well in the long term and I am holding out for a sp of at least 7.5c+.
Go ABU!
ABU Price at posting:
2.5¢ Sentiment: LT Buy Disclosure: Held
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