Replies to post #4988 on TopDollar Investing

[vantillian]

It's a solid compilation of some of the "fundamentals" with that company.

If you choose to invest in pink sheets stocks, then you had better be prepared to play the potential and/or the perception rather than the truth.

From my 25 Axioms http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30835203

20. The Buy-The-Story-Not-The-Company Axiom
So you bought a stock because of a solid PR that came out. Cool. Why did you buy? Because of the story. Do you really know anything else about the company? Is it real? Do they have a big building? Do they have equipment? Are they producing? Forget all that. In many ways it is irrelevant. If you are going to invest in the OTC you had better learn to invest in STORIES. Now, ironically, one of the dictionary definitions for "story" is "a lie or fabrication." Do you really think that you are investing in the same caliber of companies on the OTC as you would on the NASDAQ or NYSE? Don't be naive! Do you think what your company outlined in that lovely PR is really going to happen? Two words for you my friend: SAFE HARBOR. In the OTC you are investing in POTENTIAL ALONE; therefore, be a discerner of the POTENTIAL OF THAT COMPANY'S STORY. What has great potential? Water to China? American Idol in a 3-D world? Gasoline replacement in a weed? Oh yeah baby! All those STORIES have great POTENTIAL. But there's a monster "IF" involved in every one of those. After some time, the reality that the "IF" is gonna stay a big "IF" sinks in and the stock PPS encounters a slow death. Sadly, some of the really real OTC companies go unnoticed because they do not have a great story with potential. The term many investors use to refer to the story is "kool aid." Does your stock have good "kool aid?" Well, does the potential of your company make you want to buy it? Does it make other want to buy it? I try to avoid investing in OTC issues that do not have good kool aid flowage or the potential for good kool aid flowage. Wow. What a concept. On the OTC sometimes you have to invest in the POTENTIAL POTENTIAL of a company. (That last sentence wasn't a misprint. Read it twice if you need to.)

[vantillian]

Think of it another way....it doesn't matter whether I believe it.

What matters is if you and I believe that the masses will believe it.

Sounds gross, doesn't it?

Unfortunately that's the way it works down here on the OTC.

The plays that I personally stick with long term though are plays that I fully believe are TRUE and LEGIT. Plays like EXPU and FTCH. And quite possibly now ENTB...going to make some calls to the CEO this week.