Not too often are recommendations to sell on this blog.  Usually it’s a springboard for stock ideas for you to take as a stepping stone for your own due diligence. But today I’m officially taking one stock off the list to even consider buying. OPTI Canada (OPC.TO) was originally featured on the blog at $2.89 and if you got in when featured could have made a quick 15%, but has since pulled back to $2.11.  Stock prices rise and fall but in this case they have even more room to fall.

OPTI Canada is trying to issue new shares at a price that was refused by the Toronto Stock Exchange because the issue price was TOO LOW.  So not only were they going to dilute the value of shareholders stocks, they were also going to issue the new stock at a price much lower than it’s currently trading.

Maybe at some point in the future you might see this stock as a deal and you can pick it up for a bargain basement price.  But for now, play it safe and get out.

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