BIEL.pk: A comment from Shep regarding my 'Readers Respond' post yesterday in response to a question about BioElectronics:
Another problem with BIEL is several trading firms won't allow 'buy' orders. A few I've heard about are TD Ameritrade, Scottrade and I believe ETrade. The reasons for this have never been made quite clear but the message boards abound with theories. You've got a whole cadre of folks out there who can't buy, but can only sell. That makes for depressed prices until the flood gates are allowed to be opened. I say allowed because I believe there is a bit of chicanery going on behind the scenes. My advice: open an account with Zecco and load up at these prices.
VFC's Take: Thanks for keeping me honest, Shep, I did not mention the problems that many existing investors and potential buyers have had purchasing the BIEL stock over the past couple of months. In fact, I've also heard that members of the USAA investing services are also not able to purchase shares of BIEL through the program.
For those that haven't followed my take on BIEL, I've discussed this issue HERE and HERE over the past month or so.
While this enigma is not solely responsible for the drop in share price, it is definitely a factor as many investors have tried to add shares on this dip and couldn't.
Regardless of the reason behind the madness, the small investor is getting the bum-end of the deal on this one, at least those that are investing with brokerages that won't allow a BIEL buy order right now.
Message board chatter of "The brokerage houses are just protecting their clients" is pure garbage. If that were the case, then they wouldn't let you buy just about any speculative penny stock.
It's my opinion that someone is making out pretty good on this drop, and is being allowed to add at will for below three cents. I'm not privy to the reasons as to why some major brokerages are not allowing BIEL buy orders right now, but I'm not complaining as I've been adding shares myself.
As for Zecco, I agree with Shep. I'm in the process of transferring just about all of my Sharebuilder and E-Trade holdings to my Zecco account because I've never had any problems whatsoever buying and selling any stock with Zecco. They also don't have a 'large order' fee and charge only $4.50 for buy/sell orders - no matter how large or small.
You also get ten free trades a month if you're sporting 25k or more in your account.
It's tough for some investors to see BIEL trade for around three cents for so long, but - in my opinion - it's time to take advantage and buy. If that means opening up a Zecco account, then so be it.
Thanks for the comment, Shep.
Disclosure: VFC is long BIEL.
MSBT.ob: A comment regarding MedaSorb Technologies:
I was wondering if 6 to 7k in msbt would be well to risky at the current price point of 0.17-0.18, thanks for your time
VFC's Take: I cannot honestly or legitimately answer this question for a couple of reasons.
For one, I'm an opinion-based stock guy and I'm not in the business of suggesting how people spend their money.
Also, it's difficult to gauge that investment without knowing how much 6 or 7k is in relation to the total portfolio, let alone in relation to 'free cash' for the investor.
MSBT could pay off very, very well if the European Cytosorb trials for severe sepsis turn out positive, but the stock could also plummet if the trial fails.
It's up to each investor to develop their own entry/exit strategy based on their own DD. Those investment strategies should include the availability of free cash or 'night on the town' money available with which to invest.
Thanks for the interest, but that is a question that I cannot answer.
My only suggestion would be to not jump in all at once - buy in at seventeen cents with maybe half of the total amount that you planned on investing in MSBT and hold the other half on the sidelines in order to average down if the opportunity presents itself.
This way you're not as bad off if the stock drops after your initial buy, but you also won't miss out on a run if one does occur.
All just my opinion.
Disclosure: VFC is long MSBT.
From Skip regarding a start on day trading:
I am interested in starting to do some day trading, I already have a few positions. However I was going to try and make a jump to day trading and was wanting your opinion on a couple of issues I have.
What would you consider a proper starting bankroll?
How many stocks would you ideally want in your portfolio at a given time?
As far as online brokers I am leaning towards Think or Swim, any comments on them?
Thanks for your efforts..
VFC's Take: I'll start my response in similar fashion to how I started my last response - I'm not in the business of managing money and it is impossible to ascertain how much an investor should start with without knowing his or her overall financial situation.
VFC's Stock House is stricly an opinion-based stock investing website and nothing more, it's up to each individual investor to devise entry/exit strategies based on their own DD and financial situations.
As for the question of how many stocks you want in your portfolio I would say that you don't want any more stocks in your portfolio than you can manage and stay on top of, in terms of information.
It's my opinion that you should never look in your portfolio and not recognize a stock; put another way, every time you look at a stock in your portfolio you should know exactly why you invested in that stock and have a general idea of where you would buy or sell some (if not all) shares.
I have no experience with think or swim so I cannot offer an educated opinion on their services, but I will say that I use Zecco almost exclusively at this point and I've never had any problem with them.
I still use Sharebuilder for my long term picks (IRA) and for stocks that I need to buy quickly (via Sharebuilder's Express Funding option) but may not have spare cash in the Zecco account at the time.
Good luck with whatever decisions you make, and thanks for the interest in this site.