What is the long term prospect of new, unproven companies with very little data?

Hey there,

There is considerable risk with these types of companies and we consider them highly speculative. It doesn't mean that they won't ultimately be successful, but they make for very difficult long-term holds. They are companies that you need to stay on top of as the investment thesis can quickly change. They have no proven business model and R&D could take longer-than-expected.

Investors should approach these with caution and be prepared to lose on these types of companies. They are near impossible to value on fundamentals and most estimates are just guesses at this point. As mentioned, not that they can't be successful but there is a greater chance these types of investments don't pan out. Also a great risk that target prices for these companies contain more elements of 'guessing' which make them even less reliable than normal.

SO is it a pure gamble? I mean, maybe not 'pure' but there is certainly an element of trying to strike it rich quick with these types of stocks.

Mat