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Re: Alley-oop post# 20983

Wednesday, 07/10/2024 7:34:08 AM

Wednesday, July 10, 2024 7:34:08 AM

Post# of 21990
I disagree with you on this being a lottery stock unless you consider every OTC stock a lottery. Some actually do.

However, things a company says and does through its filings, its balance sheet, its business plan, its product, its management team -- all those things when added together can give me confidence that a company can be successful and that I can feel comfortable investing in that company. Does it mean there's no risk involved? Of course not. Yes, there is more risk (much more risk) investing in $SMCE than $AMZ* or $AAP*. Those are well established companies with a huge market cap.

But does that make this a lottery investment? Well, if you compare it to BB stocks, then you can make a case. However, if you are comparing $SMCE to other OTC stocks, then no, this is not a lottery. And since I trade strictly OTC, I use other OTC stocks for my comparisons. Having said that, I think it is a lottery when it comes to future success. Will they truly become a competitor to RobinHood? No clue. But I'm not trading the stock for that reason. I am trading it for the penny run and greater -- so using that parameter, this is definitely NOT a lottery stock.
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