I agree. The only element of speculation (if you can call it that) is regarding the legitimacy of the company and its accounts. Another key attribute of a speculative stock is difficulty of valuation, usually because the company has never earned a profit, or possibly never made a sale.
Mining explorers may never strike minerals, Biotechs may not receive approval, Tech companies may be beaten at the last minute, or produce something that is superseeded close to release, or even never achieve the market penetration required to validate their market cap. Darlings like PSY or BCT have never made a profit. In the case of the first two they don't even have products on the market. We don't know when they will make a profit, if ever. We don't know their operating margins because they have never operated. We don't even know they will be able to efficiently make a product, or that the market will want it.
SBB can be valued by its fundamentals, and the risk of fraud can be estimated however you like. If the valuation and price provide a good enough buffer to your perceived risk, then it is a buy, otherwise not. That does not make it speculative. When will PSY earn an after tax profit of 12 million dollars and validate its current market price (240M) at a 20xPE? Will it ever? Who knows, they have never made a profit, or a prototype. We can only speculate...
SBB Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
