Replies to post #75985 on GrowLife Inc (PHOT)

[tektone]

Now, for the downside...

Over the last four years, management has been very aggressive funding growth by way of issuing additional shares. I don't like that at all because it's dilutive as all heck.

But given the enormous long-term potential from legalized marijuana sales, I'm willing to invest anyway.

That being said, this may be the single most speculative recommendation I've ever issued. So in keeping with strict risk management, I recommend you allocate no more than 1% of your investable capital on this trade. That will give you plenty of upside potential, and more importantly, limit your downside risk to a very manageable 1% if everything goes up in smoke (sorry, I couldn't resist).

The stock has already had an enormous run up so far this year so I want to scale into the position while hoping for a pullback to lower our cost basis.

Here's what to:

Action to Take: Split your capital into three chunks and buy a one-third position in Growlife Inc. (OTC:PHOT) at market. Simultaneously, enter a limit order to buy the second one-third position at $0.40, and the final one-third position at $0.25.

In closing, I recognize that this trade may not be for everybody. So if you're uncomfortable with it for any reason, sit this one out.

You can always jump in on the next trade.

Best regards for great trading,


Sid