I am not trying to short anything. Just telling the facts as I see them.
I will certainly do not deny that greed can and does move markets and as long as greed is pushing, the markets or the stocks keep climbing and that is what happened to me with this stock which since February 5 to February 14 was trading between 1.2 to 4.2 million shares a day and climbing in price.
It seemed like a good move, even my software said so. I had it for a long time in my watch list and I had not invested thinking it move slowly and then IT began to roll like a snowball gathering momentum. The price went up and up and up, well past the price of reason and sensibility. Why? Unquestionably greed and I did fall for it.
Most of the time I do try to make investments that make sense based on the companies. For example I refuse to invest in companies that have anything to do with Iraq or Colombia (war, guerrillas, narcotrafic etc) But sometimes I do allow myself to put some money into a "risky investment based on the "MOMENTUM" and that is what I did in this case and I presumed a lot of people did just that.
Finally, by February 15 it reached a point where there were simply no buyers left so someone decided to sell at a lower price. Fear took over and suddenly others noticed and everyone rushed for the exit at the same time. Fear about the precious money takes hold and panic rules. I ignored the most basic principle and did not get out at my trailing stop. I though as soon as they announce the news it will correct itself. It made a couple of attempts of a come back and should have sold them but greed took over again and thought just wait one more day it may gain more, next day will will reah new lows. I got out at $1.40 before the stock went all the way down to 92 cents. And that was when there were only 42,500.000 shares of a total of 75,000.000 shares. Now there are 500,000.000 shares with $102,500.000 diluted shares please explain to me how you value that.
I am not trying to short anything at all just pointing out the truth, nothing more and nothing less. That is not shortening pal. So the only possible reason why with such massive dilution of shares the stock still is at this prices is because people are hoping against hope that this will go up. But no wise investor could dump the money on this stock at that price until goes lower and you will not see movement until such time. Unless as I said greed takes over.
I may also add that appointing someone who has no idea of what the oil and oil additives industry is all about is not a wise move. Lasta time I heard Radio Shock has never sold a can of oil has it?
As long as people are trading and "love" their money, it is destined to happen again. I am recommending anything to you. I simply let you know what happened to me when I ignored the fundamentals that I had followed. I tried to recover and went back in at $1.04 and a few more shares at $1,05 and then got out at $1.40 again. But still the losses are huge. Boo joo to that too.
Next time you get ready to buy a stock or an option, ask yourself why. If the only reason is because you want to make money, you may be on the wrong track. If the reason is that the company appears to be relatively sound and the entry you are making is good because there is a nearby disciplined exit in case you are wrong on the direction, then you may be on your way to successful investment.
However this company has no product, no manufacturing facilities, no sales and no sales force, no marketing, and the product at best will be offered two years from now. Are you going to make money? I truly believe that with such massive amount of shares unless it goes down to about 25 to 50 cents and then back to about $2 you do not have a chance and even that may take a long time. Again that is my humble opinion and maybe be a very wrong opinion. However, I was proven right when I took my money out on Wednesday at $1.40 and then watched it go down. I may be proven wrong but I do not see a big move on this until it reaches down fifty cents, then it will go back up.
The old adage applies: "Cut your losses and let your profits run." How do you assure that you will cut your losses? What steps do you take to avoid cutting profits short? I urge you to think about those two questions in your own trading. If you do not have answers, you might want to establish a method for yourself, a method that is not based on pure emotion. I was once told that it is more important to have a plan than what the plan actually contains. Before permitting the love of money to influence your trading actions. I am lucky I make quite a few investments and I have not lost any capital this year as far as the whole picture, But the losses on PLRO has wiped out all the earning in other companies on the first three months of 2007. At least I am back to the capital so I can start the process of recuperation. So I certainly do not need to short anything.
Everyone was waiting for the merger to be completed. No one was expecting 500,000.000 shares. and 102,000.000 on diluted shares alone. So the question to any of those who seems to be sold on this company is are you in for the money, the greed or the product. At least I am honest I went in for the greed I came out a big loser. I am afraid to say that if you are in for the product since they only have four patents that for years have not been able to get to the market then you may also end up a loser.
Good luck and good investment!
NOt a recommendation do you own work, for all I know my humble opinion is all wrong and I am not responsible for your own actions just as I do not and have not blamed anyone on this board for my actions or bitch against anyone on the board. I still hold the actions of the company irresponsible but that is my opinion and I paid over $11,000+ (losses) for it so pardon me but I am entitled to it.
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