Reverse Mergers & Low Float Plays

[Potse]

NewJerichoMan...float/liquidity......

Do you have a rule of thumb about what % of the float not to exceed? I recently noticed I owned about 5% of the float on a low liquidity shell and it made a bit uneasy. If that trade goes sideways, I'm going to get eviscerated on the exit. Lol.

Unless I am anticipating that I will need the money relatively soon, or I simply don't have a great deal of confidence/conviction on a stock, I don't really set a limit on how much of the float I would be willing to own. Float/unrestricted share counts can change so quickly in the OTC that my 5% ownership of the float today might end up being just a barely visible drop in the bucket a month from now.

NBLD is a good example of how liquidity and investor interest in a stock can change so dramatically. For much of the year there was very little volume and interest in the stock. That completely changed in a matter of a day or two. So sometimes I am reasonably comfortable in taking large positions in shells/situations where there is almost no investor interest. Investing history has shown that today's "bag of garbage" can be tomorrow's gem.