OK, Martin, let's move on.
I'd like to delve into some analysis. In my previous life, I dealt with inanimate objects which lent themselves well to mathematical modeling. This allowed me to make decisions based on the models' prediction of the future. For example, in the early 80's I wrote a computer program that allowed me to take test generated data of electronic noise and device nonlinearity of any system component and let me predict a long series of parameters of signal degradation and distortion for any size system. Depending on how big the input file was, a 286-type PC might take a while to crunch out my answers.
Now that I am investing in companies, I find I am dealing with people and the way they think and I miss my math modeling days. Computer scientists who try to design a computer that thinks like a human use the term Fuzzy Logic. Using my own "fuzzy logic" I have devised my own hypothesis of a model which I call King's Law of Investing in Penny Stocks.
King's Law states that the investor's time horizon for a particular stock is directly proportional to the number of shares of that company he holds. Some of you have gone back and looked at the posts I've made in the past on the GRNO thread, as Martin did, and have found that I have been trying to draw attention away from the immediate future and to look as long term as possible. I think I remember posting when the assembly was to be completed in November, I was warning about delays I thought to be inevitable. My approach was to consider the long term potential of GRNO rather than to predict the timing and magnitude of a certain pop in the stock.
King's Law lends itself to development of corollaries. For example, the fewer shares a person holds, the closer in he thinks, until you get to the individual who owns no stock. The non-stock holder exists in one of two states. Either #1, he isn't the least bit interested in it or #2, he is intensely interested in hour by hour developments. Another corollary would be the shorter who dwells on the past history of the company.
Now, I know this is a long and boring post, but it serves as an example of a type of post I've often made to my RICA SAC. Ask yourselves if this sounds like the product of an "Internet shark".
Regards,
Charles |
