FAQs Frequently Asked Questions
Q: I realize you wait for the fundamentals and technicals to converge to take a position, but do you ever slowly build positions in "themes" like rare earth metals or thorium?
I bring this to you because I figure that Dr K's expertise could quickly understand if Lightbridge Corp is legitimate.
A: We filter out low priced stocks, even if they have an exciting, plausible story. It is easy to fall in love with some of these low priced names because it seems easy to double your money in a hurry, especially given their often seductive story.
Remember that it takes institutional money to make a stock go from 20 to 80. Stocks that trade under $10 may have a day where they are up huge on some exciting news announcement, but if they have what it takes to compete in the marketplace with their product or service over the long run, they will move from penny stock status into a teen stock, with a larger market capitalization, then eventually become buyable.
LTBR is barely a microcap stock that trades at $6. We prefer small caps at the very minimum, typically above $300 mil market cap.
First published: | 6 Sep 2010 |
Last updated: | 6 Sep 2010 |