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Lazerking40

12/01/17 8:51 AM

#31531 RE: jim992 #31526

Every trader is different, and I am no pro. I am a long hold trader, not a day trader, so they may look at different things. For me and OTC, first thing is to understand the risk. I pick a handful of micro cap companies I believe in and roll the dice with no more than 5% of my overall portfolio. OTC is tough to analyze because it doesn't get coverage like major market stocks so you gotta dig. Historically, I look for steady progress and try to assess leadership....can they be trusted, do they follow through, are they greedy trying to line their pockets via public offerings, does their product work, etc. Past bumps mean nothing since they are catalyst and news driven, not revenue driven with seasonality variances - but it can be an indication of interest and potential. I am long VDRM cause they actually have a product I can buy right now. They have a pipeline with a relatively easy approval process and huge market potential. Being an OTC, their market cap has been hammered to submission with no institutional Investors, weak retail hands not willing to hold and frustrated with MGMT continued dillution to raise capital for funding till revenue starts. But, dillution is a necessary evil with these start ups. With a market cap of around $5M, if they can achieve a sliver of their potential, this is a huge win. Still, weak hands may push this lower, but if they do, I will add more. The risk is real, but so is the upside. My totally uneducated sell point right now is $1 and my add point is .009, but that's cause I am already in. If I wasn't, I would consider anything under .02 a good entry and anything under .015 a great entry. It really comes down to doing your homework and investing in a company you trust with a product and business model you believe in, and staying strong when the price drops if nothing else really has changed. I believe in VDRM'S business model and future pipeline, and I will know if I am right or not towards the end of 2018.