⛏ When to raise the bid?

Greetings Contrarian,

This is another Sunday edition, with your most pressing question. Here we go:

Dear OTC-cheapie-hunter

There is no wrong or right answer for this, so let’s walk through a few scenarios and pick one you’re more comfortable with.

1- If you already own enough of that particular stock and want to lower your cost basis, your stink big is more of a bonus, in which case I would be in no hurry to move it up.

2- If you’re still building your position, it’s good to ask yourself two things… First, what is the maximum price you’re willing to pay for that stock and still get a great return? Second, what is happening with the company and that particular commodity on a day-to-day basis sentiment-wise, technical analysis-wise and paper-wise?

A good “dashboard” would include all these factors.

You did not mention which company you’re stink bidding for, but if you’ve noticed that uranium sentiment is shifting to bullish on good volume and the company may publish positive news in the near future, I would move it up immediately, while respecting the maximum price you’re willing to pay.

If on the other hand, the company is 4 months (or close) after a private placement, you know the price is likely to come and meet you at your magic number so I would wait.

The worst thing I’ve ever done regarding stink bids is not move it up when I really wanted more and was willing to pay more. Getting stock cheap is a great discipline, but not getting what you want defeats the purpose.

Happy speculating (responsibly),

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational/entertainment and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.