If you like a business but think it isn't cheap enough or think it wont drop or whatever reasonI am very tempted, but at the current price, there isn't quite enough margin of safety for me.
I always play down this end as long as they has little debt, reasonable cash flow, the risk adjusted return if spread out to say 10-15 stocks will be probably better than higher cap stocks...I bought in this week, I agree with KTP's research, its definitely on the riskier end of my investment portfolio but within the boundaries I have set myself.
Hey KYPInnovative Products generate 38% of sales, but are responsible for 66% of profits. It is also where growth potential would be, aside from the population getting older argument. Being R&D reliant, it may well fluctuate greatly in the future.
An excellent suggestion, thank you. My position is quite small, but I think this will be a $30 brokerage well spent in many cases.If you like a business but think it isn't cheap enough or think it wont drop or whatever reason
you can always take say 30% allocated position in case the upside turns and average down the 70% if it drop to
your buying price..you covered with the upside but the down side you buying average down so it be fairly close to your target price
Same here. It's not just the better averaged out return that attracts me either. Every now and then there's a small cap that will appreciate 100 fold or more. There's no way to predict which one it is, but by owning a few, you may eventually get lucky, if you stay in the game long enough.I always play down this end as long as they has little debt, reasonable cash flow, the risk adjusted return if spread out to say 10-15 stocks will be probably better than higher cap stocks...
So far most of the debt free small caps business I got in, none fall over most went up a lot and the sweetener will be the future dividend based on initial purchase price ... far far more than any banks or high risk bond paying you
Hi McLovin,Hey KYP
You said this division that invents stuff is where the growth is coming from. I'm trying to see where the R&D spend is?
I love free growth, don't get me wrong!