Beware the Whisper Stock

Great message - thanks for sharing. 100% agree. The only thing I would add is that in addition to entering once the stock is more proven, consider entering only when the risk/reward balance is in your favor. At a current market cap of $100m at 9.5c, there is still too much success factored in and so the risk/reward balance is skewed towards risk. If however, the stock was to continue to fall towards 5 cents, which looks likely from a technical perspective, then perhaps the risk-reward balance changes. At 5 cents we would have a market cap of c.$50m and given FBR have $35m cash in hand, this is a more appropriate market cap for a highly speculative stock such as this. A share price of 3.5c would mean market cap = assets, and thus 3.5c should be a floor for the share price. I.e. at 3.5c, no success is factored in. I won't consider entering until we get to 5c levels, unless the fundamentals change (i.e. emergence of profits).

I would only consider it at tangible assets per share, which is only a bit above 3.5c as they are obviously burning through cash being invested in R and D. My main beef is the way this stock was introduced to me by a former, not so bright, coworker (became aware of, I have never held), - as a "sure" thing at the lunch table at work. He manged to get a bunch of coworkers into this stock as well which really bugs me. Was abused by said person when I said it might not work out.....