GTC Biotherapeutics (fka GTCB)

[DragonBits]

jesse, Microcap Vs Big cap

I always used to think the big gains came from small cap stocks and safety was in big caps.

Events have changed my mind.

BSC going from 80 to 2.80 in 2 weeks, then LEH going from 20.25 to 45 in one day has convinced me that big cap stocks move just as much as small cap, and if you look at options it is truely huge.

So a low priced stock no longer interests me quite a much as in the past. NOTE I didn't say cheap, for GTCB to be truely cheap, like LEH was cheap, it would have to be trading at cash levels or like LEH was at 1/2 book value.

If they did a 1:20 RS split and it were trading at 9.00, I would venture to say more than 1/2 the posters would leave as buying 2400 shares of a 9.00 stock wouldn't "feel" cheap nor the same as buying 50,000 shares of a 45 cent stock. Granted that in theory is is the same thing, but low price attracts a certain type of trader who likes to trade in volume but lacks the cash to trade 50,000 shares of a 9.00 stock.

So at current PPS, I would think GTCB is mildy interesting as an investment, but I wouldn't call it cheap.