I agree 100%. Blue chips with long term guaranteed returns are on offer at very heavy discounts. They will attract investor money ahead of these battered spec stocks.
The others are bound to return to good levels (with dividends. These spec stocks will only return if they report very positive news that makes them look as though they will be a commercial success. The days of the trading borrowed money in the hope that someone else will borrow more to take them off you hands are long gone - at least for the forseeable future.
Some would suggest that you would be better off taking the loss on these spec stocks and moving your money to the heavily discount blue chips as they offer a much better chance of returning your capital over the longer term! They don't need a successful phase III and commercial backer.
AVX Price at posting:
9.7¢ Sentiment: Hold Disclosure: Held
