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Alias Born | 08/24/2010 |
Tuesday, September 21, 2010 8:47:19 AM
By Definition:
Speculative investors are attracted to micro cap equities, because generally they:
are more volatile
make larger price moves in shorter time frames
have greater upside potential on a percentage basis
are easier to acquire with less initial investment
More conservative traders usually shy away from the smaller stocks,[3] because:
the underlying companies are often less secure or fundamentally sound
many shares are too volatile, on both a price and percentage basis
the companies generally don't pay dividends
they aren't subject to the same reporting requirements as Blue Chip equities, if they are on the lower level exchanges
The two sides to the investment philosophy ring true to the old axiom, "high risk, high reward."
Investment in penny stocks should be limited to money you can afford to lose. "Not your Rent Money". MDMN has a history of disappointing its shareholders, BUT if you do your own due diligince (DD) you will see that this stock has survived all the false starts to date, and that this time, might be the right time. Some of us have been waiting many years and beleive that the announcement we have been waiting for is within our reach.
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