"I am a total ignoramus when it comes to stock buying."
Mate ... I wouldn't label yourself an ignoramus. Fact is, everyone can be considered an ignoramus only when they refuse to learn new things. And if you think about it - all of us can be considered ignorant - it's simply a matter of degree.
"I have had look for any of your comments on PLS"
I have made a few posts there - according to my rusty old memory.
With small caps like CGB many investors (and stock gamblers) get drawn into the folly of feeling as though they have to get in on the 'ground floor' and when they do (or think they do) they will defend their decisions against all comers. Some will argue as though they possess some special insights that non-holders and the market cannot see ... yet!
I find it useful to think about it like this;
You can buy a small cap stock at 1c and maybe sell between 5 and 10c = handsome profit. However, a stock selling at 1c c normally carries great risk. If, the SP of CGB appreciates significantly on being admitted to the ASX (as some around here have been promoting), then why not buy at 20c or 30 0r 40c? At that price it is reasonably safe to assume that some of the risk has been reduced. For example, by the time the stock has reached 40c - they may have ceased burning cash and actually be earning revenue.
In my view, the urge to get in on the 'ground floor' can be a very subtle financial trap! Combine the ground floor mentality with some good old fashioned confirmation bias and you have a certain recipe for very poor decision making - I think!
CGB Price at posting:
3.7¢ Sentiment: None Disclosure: Not Held
