I have been contemplating doing the same (selling my holdings in other companies and just holding OBJ).
Can put a stop loss at 20% just to be safe, which means the maximum downside is 20% but the minimum upside I think most people would agree is over 100% (just to 16 cents at this level)
My shares portfolio is currently approx 20k but I am strongly considering selling my Sydney investment property that I purchased in June, 2013 which has highly benefited from the Chinese and the recent property boom - which means I will have an extra 120k to play with.
The way I've been thinking lately, is that with the stop loss, my max losses would be 20% or 30k and if the share price was to reach 32c in the next 5 years (x4) then my 150k becomes 600k
The only question that remains is, do I have the balls to plump it all into OBJ? All 150k of it? And do I have the patience to hold over 5 years. I'm 28 and single, so don't need the money any time soon - what the heck?!
Reverse diversification if you like. Go hard or go home.
I think we are onto a real gem here, but I'm not as optimistic as the majority that we are going to get a huge spike any time soon. We're still a while away from being cashflow positive (I'm thinking Q4, 2015), so therefore I can't see us closing above 15c permanently any time this year (will be ups and downs no doubt).
The other important thing to consider is, what announcements could possibly cause this stock to crash (i.e 20% or more). The only thing I can think of is illegal activities by management (which to date, seem to be very professional and capable - i.e no misleading statements and no constant capital raisings etc) or if P&G were to break away from us, possible but not likely given what both companies have gone through to make this relationship happen.
Long story short, small downside potentials, large upside potential = great investment opportunity. However, I think we need to readjust our expectations here, especially in 2015. We may get a 2nd P&G item to the market and development on the first Coty product. If we are lucky we'll get something more concrete regarding BodyGuard, but again - none of this will translate to the financials until many (3-6) months afterwards. We've seen that P&G like to supply limited stock in the first few months of a rollout to keep the customers begging for it, this means a slow to begin but exponential growth as the profits/royalties are realised to financials.
Honestly, I'd just be happy with solid developments on a 2nd P&G product, first product with Coty and cashflow positive before the end of 2015. Any concrete developments with Bodyguard, Pfizer, GSK etc is just a huge and welcome bonus, but not expected by myself at this stage.
Good luck to all holders.
(20min delay)