Yesterday...this is why I posted BK... I knew I had read it somewhere... 2014
Category: news
Published on Thursday, 03 July 2014 13:25
Written by Sally Tomlinson
See Sally Tomlinson profile and contact details
Shares in Sew Cal Logo Inc. (OTC: SEWC) traded lower by 25% in trading today coming off the back of a 40% up day in the previous day’s action.
The beauty of trading companies going through bankruptcy proceedings is you know exactly what your downside risk is going to be – 100% every time.
Not just a technicality of risk within a trade, but a reality that if you don’t make money there is a very real chance of you losing your entire investment.
Sew Cal Logo has been in a confirmed uptrend for a few days actually moving up 400% from the bottom of $0.0001 - $0.0004.
Now the question with this company is the next time it goes down to the bottom of all bottoms, will it ever return.
If as a trader you can get execution at the bottom price in the range then the chance of doubling your money or at least a move of 50% or more are quite likely, simply put because the shares have nowhere to go but higher.
This play may be a bit of a reach due to what is going on with the company right now, however again if the chance is presented to buy at the bottom or $0.0001 then it may not be the worst play in the world.
We have no problem with shares having a risk of 100% as long as the upside potential is at least 200% that seems to be the case here for all bottom feeders.
Being in bankruptcy doesn’t mean it’s necessarily the end for a company, however given the low point of this stock the chances it will actually go bankrupt and become worthless at some point are almost a certainty
