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Re: areukidding post# 19052

Thursday, 05/22/2008 6:22:47 PM

Thursday, May 22, 2008 6:22:47 PM

Post# of 158781
Lets do some risk analysis here:

Invest $100 at 0.001 = 100,000 shares

Downside risk of going to zero = potential loss of $100, loss of 100%

Upside risk of going to 0.01/share = potential profit of $900, profit of 1000%

Upside risk of going to 1.00/share = potential profit of $99,900, 100,000% profit.

The only point at which the downside risk equals the upside risk is the risk of a 0.001 stock hitting 0.002. The lower the price of any stock, the higher the resistance to greater decreases, all else being equal, and the harder for the downside risk to ever approach the upside.

Chances of going to zero under any circumstances are minimal, because any company going out of business will always sell the shell to some other new venture.

What I'm truly confused about is I hear people here saying all the time that the pinks are all scams. If that is so, what are you all doing here? Gluttons for punishment?