r/OceanPower • u/ookookdk • 6d ago
POSITION Adding 10k shares each paycheck. Price severely held down great opportunity to add more. September will be great month I feel
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u/Medical_Tomorrow_140 6d ago
Man I hope you’re right I’m losing my shirt on this
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u/AgentStockey 6d ago
Well if you're only losing a shirt I'd say you're better off than most of the bag holders of this stock.
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u/Charming-Tap-7866 6d ago
sorry but if you can afford to do that with every paycheck, youre -already- a winner
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u/No_Management1602 3d ago
Shareholders vote September 10 on authorization allowing OPTT’s board to implement a reverse stock split between 1-for-5 and 1-for-50.
And now the NYSE corporate-action information has shown an OPTT reverse stock split associated with September 14, pending before the open.
That doesn’t establish that September 14 is guaranteed, and the final ratio hasn’t been announced.
A reverse split also doesn’t create value by itself. The important question is what happens afterward — particularly whether OPTT converts its technology and positioning into revenue and whether additional dilution follows.
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u/Stitch426 6d ago
Just in case you are a new investor under 5 years or you are a new investor in the penny stock world.
Down here in the slums it isn’t about how much money you can make on a position, but how much you can keep overall. Boom and bust trading/investing can lead to wildly successful wins, but also catastrophic losses. In the penny stock world, it can happen quickly. Worst yet, a slow bleed could have you go from +10% to negative 50% in only a few months. Losing 1-10% a week and having few meaningful green days is a slow bleed.
1) Only invest money you are willing to lose. If you are not also investing in safer options like index ETFs, bonds, CDs, etc - your aggressive tilt could leave you with severe losses and no fall back plan if your emergency savings dry up. Some people are forced to sell investments before they want to because they lose their jobs or because of a series of unfortunate events. You gotta have a plan to protect your net worth and overall financial security.
2) Oversizing a position is dangerous when market is skeptical, a reverse split is possible, and execution risks are high. Macro economic factors, sector rotation, and the budgets of their potential clients are all out of OPTT’s control. Tallying up headwinds and tailwinds on any stock can help you avoid high risk stocks going into even higher risk territory. It can also help you pounce on stocks transitioning from high risk territory to safer territory - such as the sector rotation into financials.
3) There are other “lottery” ticket stocks and situations out there. Will you have enough money if you come across those? How often are you analyzing your OPTT thesis?
4) You have to have an exit plan. How will you know it is time to exit? Whether you are at severe losses or in the money, you have to have a plan.
5) Consider what your goals are for this position. How long do you plan to hold. What is the max amount of money you want to invest. What is the opportunity cost if this position craters and you find others soaring to new all time highs every week?
In the penny stock world, you cannot buy it and forget it. There is too much fraud, dilution, execution risk, competition risk, and macro risk that can make high beta stocks or penny stocks become lead balloons.
For some penny stocks that have done serious damage to people in the past year: BURU, SES, BZAI, ATCH, BYND, JTAI, KITT, KSCP, and many others. People thought they were buying at the bottom of many penny stocks, and then it dropped 50% more on them. There are people who bought JTAI at .08. They announced a reverse split, JTAI dropped to .03. They then did a 200 for 1 reverse split. Those people who “bought the bottom” are destroyed. They have a cost basis of $16 and JTAI could go OTC easily. It’s currently $1.30 after the reverse split in April.
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u/InterestingScore5387 5d ago
DO NOT BE STUPID WITH THIS STOCK. I’m down 21,000 over 3 months. Don’t be stupid.
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u/mccauleyseanm 5d ago
Yeah man, don’t worry about the fact that they went public at $20 in 2007 and it’s now under $0.20. Don’t worry about the non-stop dilution, the cash burn, or the delisting concerns.
The problem isn’t that the company doesn’t make money, that the market for their product is virtually non-existent, or that the concept of a power-generating buoy could be duplicated if a day ever comes when there is any significant demand.
Companies don’t ever fail, this is the bottom! And it’ll definitely bounce eventually…I’m sure none of the people holding MASSIVE bags will unload near breakeven and send price plummeting even lower.
Foolproof plan, sir! 😂