No. of Recommendations: 1
This is the ultimate "dumb" investment. Several years back a friend called me and told me about a company called Sunrise Technologies. They had a revolutionary treatment for farsightedness that involved heating the eye with a laser. It was non-invasive and they were getting good results. They were on the brink of FDA approval, so I bought at $4. Within a month they got FDA approval and the stock shot up to $17. I talked to my buddy and he assured me this was a $20 stock, so that's where I set my sights (Big mistake #1).

Shortly after this meteoric rise, the shorts moved in and the stock started to fall. Since I still believed in the stock, I watched it plummet and ended up talking my dad into buying at $11 (Big Mistake #2). As the stock continued to fall, I decided I would stay in until my dad got his money back.

Long story short, turns out the orders never materialized (people tended to shy away from frying their eyes versus cutting them open - go figure), and the stock continued its downward spiral. Soon it was not worth the paper it was printed on, a court order seized all assets of the company, and I wrote off the entire investment.
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