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Varchild2008 (84.76)

Nighthawk went *POOF* ... ATVI's Wolfenstein releases ...EAG update

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August 18, 2009 – Comments (4) | RELATED TICKERS: ATVI

NIHK = POOF!    It's gone....  No more.... POOF!  Just like that....  In my portfolio... then gone...
Alas.. Poor... Nighthawk...  Pretty much a MIRACLE that I managed to grab $273 of my money out before the share price shot to near ZILCH and the stock thrown onto the Pink Sheets today.

*Sigh*  But, if this is any evidence that investing in Penny Stocks doesn't work.... (SWTX) has so far been a huge success. 

Southwall Technologies has more than made up the loss I took in Nighthawk.

So, this does not change my mind any.  I think a grab bag of penny stocks will result in a GAIN overall.   I am only against exclusively investing in Pennies...  But adding some Pennies to overall portfolio is well...perfectly fine.  You may find a winner.  Finding 1 winner out of 3 that you grab is well worth the trouble.

So.. Nighthawk's dead.....  Now I am left with 2 penny stocks... (SWTX) and (EAG),

SWTX is a huge success...  that stock has escaped back above a Buck and continues to hang tough.  I increased my stake a few weeks back during its ultimate rally from 50 cents a share to trade at $1.24 today.

EAG (American Defense Systems)... Well.. I have nothing to add or say... As long as the company continues to have this frightening *SHADOW* hovering over it... it won't matter that the company produced Record Earnings in Q2.   No one will care...  Investors won't care...

I don't care.. I mean... I'll keep buying this at 50 cents a share... Purchased 510 shares today just to sorta give the stock a "love tap" but... Beyond that..

Investors are faced with a company that is perpetually not profitable as long as there is an insurmountable obstacle of EXPENSE to pay West Coast Partners their negotiated payment.
The company is not even confident they can pay 1/2 the amount by the end of this year....
Much less all of it.

But, yet... I find myself INCREASING my share count rather than decreasing it.. All on pure speculation.  EAG is not a bad company.... It's just in a pretty bizzarre financial situation right now.

Of course, the way I see it...  What's so wrong with a little Share Dillution?  Let's cut the share price in 1/2 to 25 cents a share and get the payment paid off.

Investors would feel immediate pain beyond belief in a Secondary Offering at 25 cents a share... But, once the BLEEDING from the share dillution stops.... It will be all worth it over time with the *SHADOW* finally gone.

Ultimately, the company's got to SELL SOMETHING to make the payment.  And I'd rather they did not have to sell off APSG to do it.   (F) FORD  has survived inspite of several share dillutions.

Share Dillution is nothing against the prospect of paying off the DEBT and cleaning up the balance sheet.  So OSHKOSH Contract or no Contract...  Let's get this DEBT put away before the next Earnings Report in October/November. 

Oh and (ATVI) bit of news... Wolfenstein releases today.  So far the Critics are beating it up mostly for its rather incompleteness.  The game is clearly an excellent video game so I am buying it today, but the product does have the apperance of incompleteness....  I own Baldur's Gate Dark Alliance II and that game was tremendously incomplete looking.... But it was extremely fun.

Wolfenstein's negatives do not detract me from plucking down another $60 on another video game.
Raven Software tried to do MORE with this title than the predecessor and simply didn't have as much time as it would have taken to really flesh out the NEW STUFF....  However, they made some spectacular missions... And Wolfenstein used to be nothing but Mission Based.

Now Wolfenstein has RPG elements + Open World aspect + Side Quests.  All new stuff. 
Knock a game for adding new stuff?  Because the new stuff isn't complete enough?  Nah... I ain't worried. 

4 Comments – Post Your Own

#1) On August 18, 2009 at 4:55 PM, Varchild2008 (84.76) wrote:

MAJOR CLARIFICATION:

EVERYTHING SAID ON MY BLOG and ESPECIALLY this post is 100% PURE SPECULATIVE  GUESS MAKING..

Please do not take my words to maen anything other than pure guess making.... I was absolutely WRONG about NIHK and I can absolutely be wrong across the board on all of my investment decisions.

And trying to understand whether or not EAG has the money to pay off West Coast is something I have to GUESS at.... So, I don't mean to say EAG can't pay the payment.... I have no idea what they can or can not pay...

But, I fear that with earnings reports producing a NEGATIVE (EPS).... One has to really be worried here.  So.. I am just being worried... Worried ole me.

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#2) On August 18, 2009 at 5:11 PM, IBDvalueinvestin (99.63) wrote:

Penny stocks are not even speculative, they are pure gambling.

Do you know what gambling is? Its 99% chance of failure.

Only the house wins at gambling.

There are plenty of real speculative stocks above $1 on the big boards to use your speculative money on, that actually have a 10% chance at making it. 

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#3) On August 18, 2009 at 7:17 PM, ikkyu2 (99.35) wrote:

You can't take a tax capital loss on gambling.

You can, however, take a tax capital loss on NIHK.  So you get some of your money back.

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#4) On August 19, 2009 at 8:07 AM, Varchild2008 (84.76) wrote:

I don't care what you want to label penny stocks.

The strategy of grabbing a 3 or more and hoping 1 pulls through like (SWTX) has so far..... Is perfectly fine strategy.

It's not a strategy for everyone... But hey.... I went to VEGAS twice in my lifetime.. First time in Vegas I got my butt handed to me.... Second time in Vegas I came out BIG!  Nearly every day I was gambling I hit some big payouts.  The last day I nailed essentially a small Jackpot of sorts and got over $40 off 1 Slot Machine only spending $5.

Moral of the story is if you want to invest in Penny Stocks grab a bunch at a time and all you really need to hope for is to have 1 winner out of the bunch.

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