Ocata Therapeutics Inc fka OCAT

[Drano]

Dimitri we are all guessing. As a strategy, many biotech investors will buy a partial position -- say, 1/4 as much in terms of dollars as you are ultimately willing to put into this stock. Then, in a few days or even weeks you can gradually add more. You're averaging your cost. You may be buying some shares later on at a lower price, or at a higher price.

The risk is that there is some kind of announcement that is good, and you only have 1/4 of your position. However, if there is some kind of BAD announcement -- you only have put in 1/4 of the money you were going to put in.

Averaging into these biotechs makes a lot of sense unless you think there is good news coming. If I didn't have any ACTC and felt that I understood the risks and wanted to make sure I at least had some in case there was good news, I would buy some here. But that's just me.