NanoViricides Inc. (NNVC)

[NNVClover]

$1 downside? Addressing the myth of short-selling

Investing is about compounding returns. Thinking that you can buy a stock at 1 and have lots of room for it to go higher because the share price is low is a fallacy, just as thinking 1 is "too low" to short.

Think in market caps. NNVC has a $150m market cap. If that went to $75m (I think the company is worth $10m or so), then I would make 50%. I have put about $500,000 into this trade, and would put 10x that if I could (limited short availability).

If NNVC had just 15 million shares outstanding instead of 150 million, it would have a share price of $10. I would still short it, hoping to cover for a 50%+ gain. The share price is irrelevant. My % gain is. The time it takes to make my % gain is even more important.

If one can make trades like that consistently, for many years, one can get very wealthy. 100,000 turns into $4 million after 20 years of 20% compounding. Shorting NNVC from 1.20 to 1.00 is year 1. The next 19? We'll see.

This works whether you're starting with 100k, 1k, 1m or 10m. Compounding is a beautiful thing. Think in terms of what is your annual return rate. The faster you make money, the better. The more the better. This will never change. Thinking in terms of how much you might make if the stock goes up 20-fold is foolish. Think about realistic returns building on top of each other. Identifying a 10% move in a stock is not that hard. Over 6 months? If you can do that twice a year you're up 20%. Use margin and you might be up more. Learn to trade for 3-6 month periods and ditch your losers. "Don't water your weeds and pluck your roses" as they say. Let your winners ride and get rid of your loser stocks. Shorting a stock that goes down 10% in a month or 30% in a year is a fantastic investment. Doing that consistently puts you in the pantheon of the greatest investors. There are hundreds of NNVCs out there - ANDS AVII ACHN etc etc. You didn't find something incredible. You found a low-quality company with poor infrastructure and funding that is unlikely to keep them competitive. The technology is a bankrupt concept that has been bandied about by just one person for 25 years with no success despite aggressive efforts. Find a stock going up and ride it. That is a reasonable and easy way to make money. Hoping and praying this will work out is not going to make you wealthy.