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Investing/Strategies / Small Cap Investing
|Subject: Re: Development Stage Company Valuation||Date: 4/17/2006 9:25 AM|
|Author: kahunacfa||Number: 47 of 66|
I don't invest in "Penny stocks" but I do sometimes invest in listed low priced stocks and private venture capital companies. One low priced stock that I bought in December 2005 through January 2006 was Sycamore Networks (SCMR). The stock has a market capitalization of $1.32 billion, yet was selling for less than the company's cash per share of $3.45. I bought a lot of Sycamore at $3.35 per share or less. Last week's closing price was $4.42 - up over 30% from my cost in my IRA. I have also been buying Taser (TASR) for $7 per share or less in my IRA.
Another good investment has been OraSure Technologies (OSUR) bought for between $5 and $6 per share with one additional 1,000 share purchase at $7. Stock closed at $10 last week. I bought OraSure Technologies because I saw during the summer of 2004 that their Oral Fluid rapid HIV test was approved by the FDA. I only buy stocks that my analysis leads me to believe can be four-baggers in three to five years.
I do not subscribe to any of the Premium MF Newsletters. If I would subscribe to one or two of them, it would probably be Inside Value and/or Hidden Gems. I do not subscribe for two reasons: 1. the $199 newsletter fee is not worth it to me, and 2. I have more good to great investment ideas than I have funds to buy them all.
Disclosure: I own shares in all of the companies mentioned in this post. My stock holdings are listed in my MF Profile under "Favorite Stocks".
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