Wednesday, January 28, 2009

MICRO CAPS HUNTING (Part 1)

I have seen many investors in my life. Each investor is different and has different qualifications for investing but all investors are similar when it comes to making a profit on their investment. Whether it's short term or long term ( if they have patience ), each investor needs to understand that an investment can be a tricky thing. You can ask Mario Gabelli, a mutual fund company owner about that. I had the honor of meeting him back in October 2003 on the Intrepid Museum for just a few minutes. My comment to him was about a penny stock called Baldwin Technology (BLD) on the Amex. He was shocked, and quickly replied that the the stock was a tricky one. All micro caps are tricky indeed. BLD sank to a low of 18 cents in April 2003 in midst of a debt restructuring and mounting losses. Mario's funds had a cumulative stake of more than 10 percent as they felt the vibrations of this equity position. The night I met Gabelli, BLD was at 99 cents as it was headed to 7.00 in the next couple of years. BLD became a classic 30 bagger plus. The level of confidence in each investor is different but investors who are searching for risk, may find remedy in micro caps. In the next posting on Micro Caps , I want to discuss the risk of investing in these tiny companies. (BLD was mentioned a past historical performer. It is not indicative of future performance, and it's not intended as solicitation to buy or sell this equity)
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(Attendees at the Small Cap Conference at the Waldforf Astoria vote for micro caps/small caps)
LINK
http://www.paulsoninvestment.com/Press/PLCC%20-%20Westergaard%20Survey%2011-08.pdf
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2 comments:

pgstar123 said...

I love your website. Thanks for all the financial advice!!!!!!!!!!!

FPG said...

I thank you for vote of confidence but I must say that I beleve that this site wants to promote economic and financial awareness rather than giving advice.

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