Value Microcaps Free-For-All

[lentinman]

Penny:

"Just 3 years ago, probably 75% of those stocks did not exist and in 3 more years, barring any china r/m sector implosion, I would guess that list will double."

I would say you are right on both counts. The list has doubled in the last year. Three years ago I don't think there were more than 10 or 15 (max).

If there were a chart showing the number of China BB stocks, it would be parabolic by now. Even so, I'm not sure that makes it (them) bogus. An argument could be made that if the US government suddenly legalized existing illegal drugs, you would have an explosion of new companies similar to China BBs. That wouldn't mean any of them were not worthy of investment. The opening up of China may have simply opened a door that has enormous potential for publicly traded US companies - far beyond anything we can even imagine at the moment.

Still, I'm skeptical because so many of them come in loaded with cash on their books. Very few explain where that came from. And, even fewer can be verified.

Len