Kraig Biocraft Laboratories Inc (KBLB)

[first mike]

More on risk and RRR.

In the stock market, you never have all the facts...and in pink sheets, you rarely have any facts at all...and the ones you do have are highly suspect...that's just the nature of pink sheets...that alone puts pink sheet stocks as high risk.

I agree with you completely!
Any development stage company is a high risk investment.
Pink tends to be used as an epithet, and the difference between KBLB and most pink sheets stocks is that KBLB is fully reporting as defined and enforced by the SEC, but that does not mean that KBLB is low risk.

..kblb is a high risk stock....always has been and still is...that's my opinion...regardless of any formula that tries to tell me a stock that's has steadily declined 66% for the past year is suddenly a low risk.

I have never said that KBLB is a low risk stock and never will until it has its second or third product on the market and it is making not just revenue, but profit.

The point of Risk Reward Ratio is that "High Risk" is not a single point but a spectrum and should not be treated as a single damning statement by all investors as it is by almost all investment advisers[1].

KBLB is still a high risk investment.
My Personal assessment of that risk is on the order of 10 to 1 (10% chance of major success).
But when I first found KBLB ~3 years ago my personal assessment of that risk was that it was more than 100 to 1 (less than 1% chance of major success).
So, while KBLB is still, in my opinion, a high risk investment,
that risk has gone down considerably over the last 3 years.
That does not make it low risk, but it does make it lower risk.
Over that same period the Reward, the % of profit if it does succeed, has, in my opinion, remained the same or increased.
Therefore the Risk Reward Ratio has gone from somewhere less than 1 to somewhere greater than 1.

Please understand that, as defined and used in my calculation, "Risk" is not just the risk of failure but also the cost of having a stake in the game.
That is why, at least for a new investor, the "Risk" goes down as the PPS goes down.
It costs less to invest, therefore you risk less money.

Footnote[1]:
Investment advisers all know, deep down, that they can not consistently pick the winners, no one can, as has been proven time after time by several major studies.
So what they offer clients is "Stability".

Stability is very important for many investors, particularly those who are retired on a "fixed income" such as myself.
But stability is also anathema to many, it is the death of hope.

Most of my investments, those that are needed to produce the income that supports my current life style, are very low risk.
They are managed and distributed and insured and the income I receive from them will never go down for as long as I live.
But that income will also never go up much beyond inflation.

I have been blessed in retirement with a bit more money than I need to live on.
That extra capital is my hope for a better wealthier future.
It is invested in much riskier companies and commodities with potentially high rewards.

Mike L.