a lot of people have been hurt in this way playing speculative...

a lot of people have been hurt in this way playing speculative stocks...

i got slaughtered on qtk, buying in the 30cps range after it announced a $380 million contract win in china. 2.5 years later not 1c has been delivered.

always look at the market cap of the company, not the sp to protect yourself. 6c might have seemed cheap for imi at the time but that would have equated to a $75 million market cap which if you studied the fundamentals just couldnt be justified. it might at some point in the future but certainly not back when it spiked...

this is how the rich get richer. they accumulate low, wait for the ramp and offload to the bunnies, then if there is any fundamental strength in the company after all they will buy back in low.

it has cost me a fortune working out how this game works but once you do learn you can exploit the system yourself.

stocks i like at present are zyl, clearly on top. low market cap, really establishing itself and set for short time blue sky imho, others that are financially healthy but unloved by the market at present, ddt, cmp - have to wait for the market to begin showing some interest in those though because you could be waiting a long time, kkt is interesting to me. kkt so cheap, $6 mill market cap yet they claim to be running profitably. worth looking at who some of the shareholders are in kkt, apparently fat profits have loaded up, thorneys are also in, just no interest in it whatsoever reading the chart though..bta is another that is in a fierce downtrend, most likely going to cover the gaps in the chart back down to 55cps but fundamentally is one of australia's strongest mid cap bio stocks.

its a very tough game, even if you do study the fundamentals it doesnt mean the market will agree with you. normally, eventually it will but how long are you prepared to wait?? the only way to invest imho is to put aside 2/3rds of your portfolio in true blue chips or managed funds and trade 1/3rd using a combination of charts and fundamentals. but always look at the market caps and ask yourself, is this business worth this much???