I read this forum and agreed on the potential for the need for more capital to be raised and luckily kept my investment minimal and only wasted $500 on this at 5c. Also I misinterpreted the market potential and underestimated the competitors.
I have a simple rule now: Is this low risk? Can it generate 60% PA total return. If the answer is no to both I don't invest. If its not low risk I only invest $500 but only if the potential return is much higher i.e. biotech/robots (ASX:ANR at 20c, FBR at 6c) etc. If it is ultra low risk but the returns are lower I might invest say if GVF was 15% below NTA.
But most importantly, I now try and stay diversified. Invested too little in mining last year going after financials and tech. You are never given all the information so you have to take the chance that you are being mislead on each company. The best company may be BS and the worst company may be reported conservatively and the companies environment may change (competitors/legislation/substitutes/demographics/economy). The share-market is only there for diversification. The absolute best company/s should be the one/s you try to own, manage or work for.
Also consider how much directors are investing, especially at higher prices.
