Saturday, January 30, 2010

Stock Flyers

From time to time, we talk about individual stocks as "flyers." These are relatively high-risk stocks that have good potential, but correspondingly high risk. We've discussed Rambus in some of our "stock flyer" posts.

We still think that RMBS has good potential. Their deal with Samsung should put a floor under the share price. In addition, it is likely that new licenses and/or agreements will be signed over the next few months. The risk/return part of the RMBS equation has changed so that it is slightly safer now -- but the upside is also not as outrageously high at these levels.

Some new flyers that we like include CYCC and NNVC. These are both biopharm-researchers that are high risk/high potential. Use only very risky capital.

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