LJPC & CTIC: Gambling On Penny Stocks
By admin on Mar 20, 2009 in stock trading
This week I’ve purchased 6500 shares of LJPC at 6.38 cents and 5500 shares of CTIC at 12 cents.
I consider these penny stock buys to be gambling basically. The risk is that these companies will eventually go to 0 and I will lose all of the money I put into them (which is about $1000 combined.)
The upside is that if these stocks do take off and come anywhere close to their previous highs I could make a fortune without risking that much money. Certainly I would not encourage anyone else to do this (I think that’s illegal anyway?) I’m only sharing with you my thinking on why I am gambling on these stocks.
I can live without this $1000 and that’s why I feel comfortable gambling with it. If I lose it, it’s not the end of the world for me. On the other hand if these two stocks (or if even just one of them) hits it big I could get a huge return.
LJPC (La Jolla Pharmaceutical)
Why did I pick this one? The 52 Week High is $3.20 and the five year high is $16.75, if this stock somehow regains it’s footing and returns to that five year high I would have a 262X return on my investment. My stock would be valued at over $100,000 at that price. Now obviously I’m not saying that’s likely to happen. But I don’t think it’s impossible. Seems like a good gamble to me.
CTIC (Cell Therapeutics, Inc.)
This is another gamble. But there’s also the fact that this company is working on cancer treatments which is pretty cool. Wouldn’t it be nice to get rich investing in a company that is actually doing something positive for the world?
The 52 Week High is $9.60 and the five year high is $408.40 and doing the math on this one just spits out insane numbers which I believe are literally impossible. But even getting back to just the 52 week high would make my stock worth over $50,000. If it somehow managed to reach it’s five year high again, my stock would be worth over $2 million! Indeed, this is a lottery ticket.
In the interest of accuracy, CTI’s stock highest price in the last five years was $10.85 in February of 2005. Dan Eramian, CTI Communications
Dan Eramian | Mar 20, 2009 | Reply
Thanks Mr. Eramian. I got these numbers from Google Finance. I wonder why they are incorrect?
That number does make a lot more sense, the #s on Google Finance spit out insane results that don’t really add up. It’s like the market cap would have had to be in the trillions for the numbers to add up.
admin | Mar 23, 2009 | Reply
Huge gains for these two today: LJPC went up 96% and CTIC went up 50%.
I am tempted to take my profit and run, or at least some of it. But I think they could both go a lot higher.
admin | Mar 24, 2009 | Reply
My gains on these two stocks are now 113% and 130% respectively.
I really thought there would be a drop back today after yesterday’s run… I’m surprised that they are still going up.
Admittedly I’m a bit nervous and am thinking about taking my profits and running but I know I’ll kick myself if they do keep on going up (and up and up.)
admin | Mar 25, 2009 | Reply
Update: I ended up with over 200% gains on both of these plays.
admin | Apr 6, 2009 | Reply
As of right now CTIC is at 64 cents. This is definitely an interesting stock with the movements it has. Of course a buy and hold from my initial buy would be up 5.3X. In other words you could have bought 10,000 shares for $1200 and sold those shares for $6400 today for a gain of $5200.
admin | May 5, 2009 | Reply
How about 93 cents today! 7.8X up from my initial buy point. I made a great profit on CTIC but now I’m wishing I had got back in!
admin | May 6, 2009 | Reply
CTIC hit a high of $1.85 today. it’s at $1.31 now… But H. Christ… imagine if I had held onto this puppy from 12 cents to $1.85?
admin | May 6, 2009 | Reply
I’d have made $9,465 on my initial $660 investment… HA!
admin | May 6, 2009 | Reply