risk reward ratio very attractive, page-7

Ako,
You need to understand a little more about the function of risk/reward ratios. Briefly and simply put it is like this.If you are going to use risk/reward ratios to select your investments you must compare the risk/reward ratio to the probability of success.
For example if you risk $100 and your reward in the success case would be $300 then the RR ratio will be 3 to 1, however you must then compare the probability of the wells success to the RR ratio.If the probability for the wells success is 8 to 1 then your investment that only makes you 3 to 1 is a bad investment.
Risk reward ratios were initially used by poker players and still are.If you place a $100 bet and the pool in the middle is $500 then your odds of drawing the right card and winning must be better than 5 to 1. Otherwise you will slowly go broke because you are not being rewarded enough for the risk that you are taking.
In addition, you must have agood idea of the numbers involved.Your 2 cent downside is very optimistic.
I hope this helps with your future investments.Good luck.