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dragonLZ (99.39)

Next time you think you shouldn't bother investing 150 bucks, think again.

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December 02, 2011 – Comments (13) | RELATED TICKERS: INHX.DL

If you think you can't make any money by investing $150 in stocks, I'm with you (especially, if you have to pay your broker $10 or something like that). Spending it in a nice restaurant sounds like a much better investment, doesn't it?

However, there is one stock that is trying its hardest to change my mind. Maybe you've heard of it: Inhibitex (INHX).

And here is how the story goes:

 

#51) On September 10, 2009 at 8:39 PM, dragonLZ (80.77) wrote:

Here is today's e-mail:

From:

Sent: Thursday, September 10, 2009 8:33 PM
To:
Subject: RE: Stocks 

I know this is nothing to write home about - small gain (moneywise) on a small investment, but I think it’s interesting.Yesterday, I had only $150 to invest so I decided to buy 160 shares of a cheap stock INHX.I thought: I buy some today and then buy more as I have more money available. And what happens today: INHX is up 38%.Isn’t this ridiculous?  p.s.See attached confirmation of my yesterday’s buy and the action on INHX today. 

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#53) On September 10, 2009 at 10:32 PM, TSIF (99.94) wrote:

INHX ?? Where did you pull that one out from?  You have a knack for these small, micro's that the average investor has never heard of!!!  :)  Maybe you need to have an email list to send your buys with as soon as you make them.  If you develop a large following then, like Crammer, when you send your email, everyone will buy, reaffirming your clairvoyance!  Should work well with MICRO's! 

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#54) On September 11, 2009 at 12:02 AM, dragonLZ (80.77) wrote:

DSCO: Even though I did take a look at it (its chart) just recently, I have to be honest and say that I didn't think it's a buy...

INHX: Was a part of my new strategy of getting into a few cheap bio stocks hoping to catch a 10-bagger. And I just liked it's chart. p.s. Once again, I pissed off my wife by telling her a stock that I invested only $150 in went up 40% the following day...

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#60) On September 12, 2009 at 11:02 AM, dragonLZ (80.77) wrote:

I'll pass... (thanks for the info).

p.s. I like what happened with INHX yesterday. It was down more than 20% in the morning, then slowly climbed back to finish the day one cent up from its closing price the day before (one cent below 52W high). It looks like there are people believing in this stock. Will definitly buy another 200 shares or so next week.

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Fast forward to 12/2/2011 and INHX is a $15.40 stock.

It was at $.84 when I got 160 shares for 150 bucks on 9/9/09. Today, those same 160 shares are worth $2,460 (1700% gain in a little over 2 years).

Now, I know that's not a lot of money, but one can't deny that 25 hundred dollars sounds much sexier than 150 bucks.

But that's not where the story ends.

Do you know how much are 150 bucks worth today if invested in Inhibitex 3 years ago?

As you can see in the chart posted in the first comment, people who bought 3 years ago are up more than  6,000 percent, which means their initial $150 investment is now worth a little less than $10,000 (INHX traded around 24 cents a share at that time).

Not bad, don't you think?

So next time you are thinking it's not worth bothering investing $150, make sure you remeber this story (especially, if you are investing for your children).

I know I will...

Marry Christmas and Happy New Year!

Happy Holidays and HAPPY INVESTING TO ALL!

DLZ

p.s.

2009 was a good year to be buying stocks...

13 Comments – Post Your Own

#1) On December 02, 2011 at 2:57 PM, dragonLZ (99.39) wrote:

 

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#2) On December 02, 2011 at 3:40 PM, SkepticalOx (99.44) wrote:

Or how about you buy a $1 powerball ticket like those Connecticut money managers who won a lump sum of $100,000,000+ this past week?

Unless you really know what you're doing (which you may), chances are investing in micro-cap biotech are a fool's game even if you take many little bets. You showing one winning bet out of hundreds/thousands (most probably went to $0, lost money, or didn't beat the average) is not an argument for investing $150 (where you'll be paying $20 round-trip to your broker, which already almost a 15% hurdle).

Others, such as billionaire Mark Cuban, suggest that unless you have $100,000 in liquid assets, you shouldn't be investing in the stock market. Hmmmmmmm. 

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#3) On December 02, 2011 at 4:10 PM, portefeuille (99.78) wrote:

Great, you should have made an "outperform" call in the "caps" game. There are currently 3700 INHX shares in my "fund" (see here) with break-even of around -2.27 USD. I still somewhat like it ...

 



enlarge

(from here)

 

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#4) On December 03, 2011 at 7:26 AM, fewl10 (34.54) wrote:

The sun shines on a dog's butt once in a while.

So you picked a biotech that returned 6000% since 2009.  Why not just go to a casino and put it all on #13? 

Because for every stock like this, there are 64 others where you'll lose half or more of what you invested. 

And let's not forgot the unusual circumstances that led to 2009's "opportunity".  I'm sure you, and all the other folks tooting their own horns on CAPS, foresaw the unprecedented spending and support of frauds coming down the pike that led to the multi-year orgasm in stocks. 

I do believe there will be hell to pay for this rally because it's founded on unprecedented debt.  Sometime soon, maybe next year. 

So go ahead and buy stocks, folks!

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#5) On December 03, 2011 at 7:51 AM, truthisntstupid (95.70) wrote:

Nice!  What led you to put your money down on this one, DLZ?  Swinging for the fences like that isn't my style, but I'm happy for you.

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#6) On December 03, 2011 at 5:02 PM, portefeuille (99.78) wrote:

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The Top 50 List

Friday, December 2, 2011 at 04:39PM
...

Inhibitex (INHX) is currently the best performing Russell 3,000 stock year to date with a gain of just under 500%!  Pharmasset (VRUS) ranks number two with a 2011 gain of 490%, and that won't change much since the company is in the midst of being acquired.
...



enlarge

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#7) On December 05, 2011 at 1:11 PM, dragonLZ (99.39) wrote:

ScepticalOx, I was always wondering how did you get such a name.

What's up with people like you and fewl10 who can't be happy for other people's success stories. Would you rather like me to post something about my losers? Would something like that make you guys happy? Yes, I had plenty.

Porte, where did you get this top 50 list? I could use that and would really appreciate it if you are willing to give me a link or something like that. Thank you.

Thank you, truth. I appreciate it. I take many small bets, but also sell way too early too many times. However, getting better at it all the time.

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I'm sure you, and all the other folks tooting their own horns on CAPS, foresaw the unprecedented spending and support of frauds coming down the pike that led to the multi-year orgasm in stocks.  

fewl10, I did not foresee it, but Bette Midler did (you can read about it by clicking this link: http://caps.fool.com/Blogs/bette-midler-and-the-art-of/535337)

 

Good Luck to All!

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#8) On December 05, 2011 at 1:28 PM, portefeuille (99.78) wrote:

give me a link

it is given in line 2 of comment #6 above.

The Top 50 List

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#9) On December 05, 2011 at 2:49 PM, TSIF (99.96) wrote:

If you live and breath Penny Stocks then you are taking your chances. Some penny players believe that a big gainer will compensate them for the win/loss ratio, but I doubt it.

If you manage your own portfolio, however, there is NO HARM in picking an occasional penny spec play.  You go into the game much like a lottery ticket, or roulette, but the fun can last much longer. You plan to lose it all and if you do, you take your tax loss,  pick another one and try again.  If you "win" then you get yourself a treat that you wouldn't have otherwise gotten youself.  Maybe the $150 came from something you "denied" yourself in exchange for the "game".

The point is to enjoy yourself. KNOW what you are doing and betting on.  If you sleep better at night with the $150 in a Mattress or in Apple then go for it.  I've seen some big name tickers cost investors a lot more than a spec penny play if done in moderation.

The point here is to learn something, and maybe have some fun doing it.  IN this case you've got a baby bio which is certainly volitile.  While watching the gamble you can learn about drug company's study's, Phase I, II, III testing, raising funds, dilution, size the market if approved, figure if they will produce it or sell the rights, wait for the FDA date and see how your gamble did. If you lose your bet you have a cheap education you vested yourself in enough to care. 

The problem with picking a biopharm as your penny play is that it can gap down out from under you.  Other penny plays may be less volitile, but generally have less upside.

Go DragonLZ!  If you go shopping with the profits then let us know what the current fads are in lady's clothes!!!  ;)

TSIF

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#10) On December 05, 2011 at 3:10 PM, portefeuille (99.78) wrote:

http://caps.fool.com/player/zzlangerhans/sectors.aspx?astable=biotechnology&filter=all#biotechnology

score: 4,044.92.

 

http://caps.fool.com/player/portefeuille2/sectors.aspx?astable=biotechnology&filter=all#biotechnology

score: 3632.87.

 

http://caps.fool.com/player/portefeuille/sectors.aspx?astable=biotechnology&filter=all#biotechnology

score: 3441.16.

 

These scores would be slightly higher were the "delisted" stocks kept in their "sector" category.

some of those no longer counting as "biotechnology" sector stocks in the "caps" game.

http://caps.fool.com/Ticker/CYPB.DL.aspx

http://caps.fool.com/Ticker/FACT.DL.aspx 

http://caps.fool.com/Ticker/MEDX.DL.aspx

 

Quite a few of the stocks in the "biotechnology" "caps" game sector are not really biotechnology stocks.

http://caps.fool.com/tag/biotechnology.aspx

http://caps.fool.com/tag/pharmaceuticals.aspx

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#11) On December 07, 2011 at 10:18 AM, dragonLZ (99.39) wrote:

Thanks Porte, Thanks TSIF (Talbots might be coming back into style...60% jump today... :) )

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#12) On December 07, 2011 at 11:00 AM, TSIF (99.96) wrote:

Talbots is a head fake from disgruntled holders. If the $3 bid does go through then that would be tops as it would be taken private.

Talbots has not been "takeover" friendly and would have to divest of it's 'poison" pill.   I doubt the bid will go through, but I wouldn't factor the jump into your "formula".

All the best,

TSIF

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#13) On January 08, 2012 at 1:33 AM, portefeuille (99.78) wrote:

Bristol-Myers Squibb to Acquire Inhibitex

There are currently 100/7000 BMY/VRUS shares in my "fund" (see here) with break-even of around 29.21/2.78 USD.

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