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19/03/16
22:22
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Originally posted by Nikec
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I've got a ton of experience investing in small cap live or die type of firms..
I wouldnt be investing into SGH if its market cap wasn't this low.. It wouldnt interest me.. Large cap firms have limited upside. Small cap firms on the other hand are significantly more volatile and have a much greater Beta.
For this very brief moment, forget about everything you know about finance.. And put this concept into play..
I purchase risk.. thats how i look at shares.. How much risk am i buying now.. and how much less risk can i sell... Basically i buy when everyone else is running for the hills, claiming that the world is about to end.. Then tomorrow when they realise it hasn't i sell them back the shares...
That is the one and only concept you should apply... Always.. If you are holding a short position, it means that you are expecting the world to end... Which, despite the recent share price is not the case.. So continue holding onto your put's, shorts etc.. SGH continues to trade, the longer its alive the longer it lives on..
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Nikec, if you bought around 0.5 .... Definitely you can make bucks but you can loose everything too, but you look smart so you diversified your portfolio so it will be ok. Again SGH is a risky bet. So much uncertainties. That's what I said.