I just established a position. Is there risk in that? Certainly. But there is risk in every investment. It's a matter of weighing that risk. For RAMPF the downside is 0.15, while the upside is what...x2 to x5?
Taking a calculated risk here and making an investment in the 52-week low area seems worthwhile. If RAMPF is successful with remediation or works out an agreement with lenders, IMO this is a doubler for sure. If not, I dump my shares and move on with a tax benefit.
There's a chance of just about any penny stock at a 52-week low going to zero. But I would never ride this thing to the bottom. This is certainly not an "invest and forget" stock right now, but one I plan to monitor daily.
The reason I got off the sidelines and into the game here is I think the company's financial picture is better than its most recent earnings statement suggests. I also think there is a good possibility of this company overcoming its recent hurdles, which would lead to beautiful returns for anyone who buys at the 52-week low or under. It's also an energy stock, and clean electricity is in growing demand.
I'm a long and not a day trader. I typically invest in stocks that I believe have risk being weighed into the price that pushes it far lower than I believe the financials and company prospects suggest it should be at. I took the same approach with HTM after its San Emidio project was delayed and created BK concerns among investors, pushing the price lower than the assets suggested it should be. HTM has turned the corner now, is reaping nice gains and has a bright future. I'm hoping for a repeat here.
The trick to penny stocks is to establish a base position as low as possible, be patient through price swings, but not be blind to anything that causes your investment risk to increase past your threshold.