how much would you invest in a spec, page-10

If you think it is good and better than other options then put 100% of your portfolio into it - that is if your portfolio is less than $10K.

It largely depends just how "spec" it is.

In the context of a $250K portfolio this is my general rule of thumb.

CRJ, JRV, ORO ..... have no defined economic resource at this time and are 100% spec. $5K is my limit in these type.

FMG is still a 75% spec stock - no income yet but has a defined resource and a production plan - could be non-viable with ore prices less than $60 though so could go broke when RIO, BHP and CVRD upgrade production as planned and ore prices crash - another Forrest "miracle" - though he'll be out by then of course. $10K is my limit and I'll start selling stock when my holdings hit about $15K due to SP appreciation.

IMO companies like TAP, BPT, PPP, SAE, and BUR that have income and a good current PE ratio are less spec than FMG, maybe only 50% spec and IMO are lower risk as Oil and Gas have always got a market. I'll hold 20K and likely not sell if SP appreciation increases this significantly above $20K.

Blue chips are 0% spec and I'll invest a large amount of my portfolio into one I think is undervalued - but not at the moment as they are almost all greatly overbought (maybe excluding BHP, RIO and ANZ).