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Re: User-65225 post# 125522

Wednesday, 04/07/2010 10:00:43 PM

Wednesday, April 07, 2010 10:00:43 PM

Post# of 241045
Repost...Here are some more detail as to why i love these TYPES of stocks

The key to a mega-bagger run is interest, not fundamentals... This is why those that stay away from a stock because they do not file or have bad debt, etc miss out on some of the biggest runs...IMO these people are either too cautious, or just poor at DD.... There are good pennies out there (long term), but they are few and far between. It takes SKILL to find them.

The reason why i love mass retail stocks is due to the TYPE and SIZE news they come bundled with and the predictability/verification of growth (DD) that we can EASILY do... Names like Home Depot, Walmart, Target etc attract BIG interest because massive revenue can be generated just from IMPULSE buying via these accounts.... Home Depots foot traffic is 22,000,000+ customers per WEEK... Both smart money AND dumb money can easily see the mass sales potential, drawing lots of buy interest to the stock.

Its also easy to verify sales/placement by visiting these retailers and seeing first hand if the product exists. SEEING is believing in pennyland... which is another KEY component which attracts tons of interest to a stock like this... Sadly most of the investors are in the USA and we have yet to experience this. Excitement should reach new heights when we ALL can walk in a mass chain and fondle our bottles.

Like i mentioned earlier today... There is a certain point where a stock like this gets fueled by massive interest through their consumers, distribution partners, Joint ventures, sales reps, employees in the retailers, etc... Those "in the mix" KNOW when a product is growing rapidly, cause they see the movement through their warehouse, requests from customers, how fast they are stocking the shelf/reordering, etc...

All it takes is for these people to get interested enough to pick up a bottle and see the ticker symbol on the label, then dig deeper into the company...

...and those that buy stock, will most likely become PUSHERS of the product... the snowball accelerates.

I say it often and ill say it again... There is NO better TYPE penny than a low cost/high margin consumable play with mass retail penetration.

PS: A stocks multiple (p/e ratio) is based on SENTIMENT... If people see a possible massive growth curve taking place, they will load the boat and lock it up for years inflating the value tremendously... This is why these TYPE stocks pull off some of the biggest runs.
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Repost...

Were the people that bought Hansens at a $10,000,000 market cap ignorant if they averaged UP when the market cap was $100,000,000?... IMO smart money averages UP when developments indicate a higher valuation/growth/interest curve... its the LONGS that follow a company CLOSE that see things BEFORE the masses... Some DD takes time to accumulate and/or acclimate too. The big picture is not always visible when we first glance at a stock. This is to the LONGS advantage.

Hansens has a different share structure, but the market cap was about the same as WNBDs when it was at its lows ($10,000,000) and it eventually shot to almost 7 BILLION ($7,000,000,000).

It was not hard to see that the Monster Energy drink line was gaining more and more retailers and recognition. Everywhere you turned it was popping up... Those that payed attention to the growth trend/curve changed their lives in a big way... Id be happy with a small sliver of what those longs made. WOW

Now imagine those that flipped out of HANS under .25 with the expectation that it would pull back and never did?... If you follow a company CLOSE for years and miss a massive run, it sucks! I dont care how much you CLAIM to "take your emotion out of the market".... IT SUCKS!

Some of the BIGGEST runs over recent years, on any exchange, came from high margin CONSUMABLE products companies with mass retail penetration. Just like WNBD is doing... These are the best TYPE penny investments IMO. I have many examples.



My posting contains many opinions. So please do your own research and validation.

Go Giants!