It's a great letter and has plenty of relevant, supported, facts. I won't advise you one way or the other, but let me tell you my story about suggesting a "sure thing" stock to friends and family.
As I've mentioned on a number of occasions, I have been holding a biotech stock for about 10 years. It was first brought to my attention by a very wealthy acquaintance who was so successful on Wall Street that he retired at age 40 (he's 65 now). To keep busy, he now writes a successful stock advice letter.
Ten years ago he suggested this biotech stock that was going to revolutionized cancer treatment. He put all of his clients into it (he manages investment accounts for select individuals, but does not do so commercially) and issued a strong buy in his newsletter. He personally put millions into it. He also has a friend who is even more wealthy than he is (both have private jets) and this other individual put tens of millions into the company (in fact, he controls it now). The stock was trading for a few bucks, but both individuals felt it would eventually hit at least $100/share once the FDA approved the company's product, that's how sure they were of this company.
Well, who am I to dispute such projections? These guys are both mega-millionaires and both made their money via investments. They both know what they are doing. So, I told everyone I knew about this "sure thing" and personally invested a very large chunk of our net worth into the company.
Now, 10 years later we are hundreds of grand in the hole and the product is not even in phase 3 trials yet. In fact, the focus has shifted from cancer treatment to a different disease treatment.
My family and friends all lost 90+% of their investment, as did we. My rich friend got our several years ago and I should have followed his lead. Our losses were manageable then, but now the stock price is so low that there is nothing to do but hold, hope and pray for a miracle.
I don't blame anyone but myself for the huge lose I incurred, which most likely never be recovered. However, I do blame myself for all the pain and misery I caused those family and friends who took my advice.
I know you want to do this for a great reason, to share the wealth we all hope to have from our investment in ELTP, but even a company with great prospects can go terribly wrong. What if JR gets hit by a truck over the weekend? This is pretty much a one-man show and if anything happens to him, like his previous long illness, the company is sunk. Do you want to take that chance? I leave that decision up to you.
AI
