I understand that the concept of buying cheap but I can also see...

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shail151

301 Posts.

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10/01/22

11:41

Post #: 58747789
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Originally posted by Tian8824: ↑

The most you can lose is 1x. The hard part is having the patience and free money to hold it when/if circumstances turn for the positive.

Investors always focus on the “risk of losing the lot”. Actually how much you lose is more dependent on how much you are investing and how diversified you are.

The profits or “loss of profits” occur if you fail to minimize your average buying price and maximize the average selling price and sell at a price substantially below the highest point the stock may reach in the medium or long term.

I heard some fundies say “our competent analysis and due dilligence resulted in us not investing in this or that and they eventually delisted.” Problem is, that approach also meant they missed out on afterpay, crypto, and the many 500x and 2000x appreciation lithium stocks

Even if they did buy bitcoin, there will always be a 100x difference in profit if you buy bitcoin at 1c or 1 dollar. That’s the loss resulting from not buying cheap enough. Then you could be selling bitcoin at 2c or 2 dollars. That’s the consequence of not selling at the top.

Put bluntly, this stock 13m market cap, the most all
investors or 1 investor for that matter in the instance of a buyout can lose is 13m. Not a lot compared to the billion and trillion dollar market cap growth stocks available on the market atm.

If someone decided to spend 13m on OSP and control 100% of the shares, the stock price can’t go down if the holder refuses to sell. I retrieate 13m is not alot to invest or to lose for some individuals or institutions if the upside benefit is substantial and the buyer is merely diversifying his assets.

Because the liquidity is not there to buy the company for 13m, I believe by that reason alone it is worth more than 13m if the company has potential regardless of the risk involved

In summary. Buy cheap and hold long term. Your risk mostly lies in not whether the stock will drop to zero, but you investing to much in one basket, you not buying cheap enough, and you not holding long term and selling as close to the top as possible.

Just my take. DYOR

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I understand that the concept of buying cheap but I can also see SP going further down in the coming months. I doubt if they will be able to secure funding with a capital raise as well.

OSP Price at posting: 61.5¢ Sentiment: Sell Disclosure: Not Held
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