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Boiler_Master

02/18/24 12:01 PM

#50344 RE: Boiler_Master #50343

Well in theory, the reward has stayed the same as well. Risk is if the share price drops 30% they could lose money, and reward is hoping the share price remains the same to make 42.9%. Considering the SP is not likely to drop 30% the moment you receive shares, it would be hard to lose money in this scenario, which is why they made the deal. So if they believe they'll make a certain % profit on average, call it 25% profit goal, why not make that 25% on as much money as possible? Meaning, at the highest share price possible. Wanting the SP around .15 just means you make the same expected 25% profit on the lowest investment amount possible. Why make your goal 25% on a million dollars when you can make the same goal 25% on say three million, or five million dollars? As I've said, it's just math. Higher share price is in their best interest. Only a fool would want the bare minimum possible.

lflhdy

02/18/24 12:10 PM

#50345 RE: Boiler_Master #50343

I would have to disagree. The risk is much lower on a down trending stock at a lower price. And the rewards are much higher if you buy low and sell high. Say they buy at .11 right before the anticipated volume of the K and sell at .22 instead of the .15 for 30% now they have made 100%. But if they buy now and it drops to .15 they have to wait till it gets to the current price just to make their 30%. And even you have to admit there is manipulation between the big boys and the MM's in penny land. I know they are not in the business of long term investing. They want a quick flip with no risk. But hey we all have different strategies I wish you the best in yours.