New Net Net Position Added Vaxgen Inc. (VXGN)
Posted on | August 4, 2009 | No Comments
I have added a net net position in a stock I have been following for a while: VXGN.
But don’t do what I just did. Please! If you already know you are value investor who understands how to value a stock from an assets perspective, go ahead do what you like. But if you are a beginning investor still trying to figure this out, don’t invest in this stock.
I will discuss this purchase in subsequent posts. I have included a few notes on why I bought now and not earlier.
I did not buy this penny stock earlier because of a looming lawsuit, which threatened to obliterate the value of this company. Thanks to a great update post from Greenbackd.com ( where you should go for a detailed explanation of some of the financial details) I realized that the lawsuit had been settled and that VXGN had turned into a viable net net investment, with liquidation as a catalyst. Although I bought VXGN at .54/share I am convinced its liquidation value is more than 40% higher between $.78-$.90, so this is a position with plenty of margin of error. Much of this will become clearer later in the week. I used my ThinkorSwim account because their fees are terrific for penny stocks. I will get into brokers in later posts.
Disclaimer: Because I make a trade is not a good reason for you too. I am not advocating that other persons do what I have done, just demonstrating my investing style. Before you engage in any investment make sure you understand all the risks associated with it. That you can have a permanent loss of capital. Don’t trust someone because you like the way their website looks. Or you could and throw away some more money sending me a check for $1000.
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