| While
internet stocks have high risks and high
potential rewards, other stocks can
provide equal "excitement."
Some companies have no profits, no
product, no market, no money, and no way
of paying their debts short of issuing
stock to the public and borrowing money.
Why would anyone buy
part of a company with no money or
product? The answer is simple: potential. A
company with nothing won. t
be selling shares for a high price,
and the stock won. t be particularly
attractive to most investors.
The key is picking the right one.
If the company. s long term plans
eventually come to pass and the company
succeeds, all of the sudden they enter
the market out of nowhere and can make a
ton of money. If the company has an
innovative and successful idea, all of
the investors who bought stock in it
while it struggled would become rich.
Need an example?
Let.
s look at a company called Imaging
Diagnostic Systems (IMDS). This company
hasn. t made a penny in its
entire life. This company has no product,
and offers no services. This company
has negative earnings in fact. All
this company has is some blasted gizmo
called a CTLM"! that no one has ever
heard of. Why would anyone even consider
buying this stock? With a little
research, and a little faith in the
company, it. s easy to come up with
a list of reasons to buy the stock.
Imaging
Diagnostic Systems is working on a
breast-cancer detection system, which
utilizes lasers rather than breast
compression. This technique will be
attractive because it is easier, more
convenient, and cheaper than the normal
methods for detecting breast cancer.
Imaging Diagnostic Systems already has 6
different patents on the technology, so
no one else is going to come out with it
first. The company just lacks FDA
approval of their methods due to a lack
of clinical studies and evidence to
support that this actually works.
Even
in the Bio field, high-risk stocks like
Imaging Diagnostic Systems can be found.
Now, if their cancer detection methods
are proven to work better than what we
have now, the company could put it out
on the market and make billions (which
would in turn make the investors really
rich). On the other hand, if the FDA
decides that the laser idea is too
risky, the company could easily go
bankrupt and investors would have lost
all of their money.
Buying
a non-internet high-risk stock can
really pay off, if the company comes
through. Buying stock in a struggling
company working to make a profit can be
very beneficial in the event that the
company succeeds. The trick is finding
the right company.
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